A credit score is a number that predicts the likelihood that you repay a loan on time. A few different scoring models are used for credit scores, but the range for most models is between 300 and 850.The average credit score is 711. Lenders use your credit score to decide whether to approve a loan and to determine the term and interest rate for your loan. It’s important to regularly check and know your credit score so that you’re aware of any issues that can lower your score, such as late payments or high credit utilization.
How Often Should You Check Your Credit Score?
The major credit bureaus suggest checking your credit score a minimum of once a year. If you’re working to positively impact your credit and want to monitor your progress, check your credit score at least every three months. Maybe you’re a victim of identity theft or need to apply for a loan relatively soon. Both situations call for more frequent credit checks. Look at your credit report once a month to make sure there aren’t any unknown accounts. Check your credit score when you obtain your credit report to ensure there aren’t any unexpected changes.
How Do You Look Up Your Credit Scores?
The three major credit bureaus – Experian®, Equifax®, and TransUnion® – use your personal information as well as information about your debt payment history to compile your credit report. It includes details for current debt and the debt you’ve held in the past.
Your credit report also includes data available via public records, such as:
- Liens
- Civil judgments and suits
- Foreclosures
- Bankruptcies
The Benefits of a Credit Monitoring Service for Your Credit
A credit monitoring service is essential when you’re monitoring your credit for suspicious activity or actively trying to reach your credit goals. Your credit monitoring service helps you detect new accounts and inquiries to your credit report. If you didn’t make these changes, there’s a good chance your identity is compromised.
Since most credit score monitoring services also include your credit score, it’s an easy, convenient way to make sure your score is trending in the right direction. Ready to start monitoring your credit score today?
