Your credit score determines whether or not you get approved for a loan or a credit account, and it also helps to determine your interest rate. A good credit score can help to get you a lower interest rate on your car or home loan, and that can save you thousands of dollars. With all of the many benefits of having a good credit score, it makes sense to check your score regularly and make sure that it is the highest it can be.
What Is A Credit Score
A credit score is the result of complex calculations done to determine your reliability as a consumer and credit account holder. The common range of credit scores is from 300 to 850, although some credit companies have their own mathematical formulas that give results that might fall slightly outside of that range. The best credit scores are in the 600 range or higher.
Checking Your Credit Score Quickly
There are websites you can sign up for that will allow you to check your credit score whenever you want without having an adverse effect on your score. Some services allow you to check your score for free, while others require you to pay a monthly subscription fee. Be sure to read the terms of the website you are using to make sure you understand whether or not a fee is involved.
Getting Your Score Through Your Credit Account
If you are hunting for a new credit card and want to keep track of your credit score, then you should sign up for a card that allows you constant access to your credit score and profile. Not every credit card company gives you free access to your credit score, so you should be sure to read the terms of each account you are considering to find the one that will give you your free credit score.
Be Careful Of Free Credit Reports
The Fair Credit Reporting Act is a federal law that requires the three major credit reporting companies (Trans Union, Equifax and Experian) to provide every consumer with a free copy of their credit report every 12 months. But consumers should be aware that these free credit reports do not include your credit score and the federal law does not force the credit companies to reveal your score for free.
Why Should You Check Your Credit Score?
When you regularly check your credit score, you can see if anyone has tried to open a credit account in your name without you knowing it. Checking your credit score can also let you know if you should apply for that car loan now, or if you should spend some time improving your credit score first.
If you have a good credit score, then you will find it easier to get the credit you need to buy a car or a home. You will also find it easier to open a credit account that you can use in emergency situations. There are ways to check your credit score for free that you should use to monitor your score and be alerted when a negative event threatens to lower your score.