Ways To Monitor Your Credit Score
Most people think that they only need to look at their credit score when they want to borrow money. The truth is that your credit score will play a significant role in the granting of loans, but that is not the only reason to monitor your credit.
Your credit score is one of the most important digits in your life after your social security number or driver’s license number. Those with the best credit score will get the best interest rates on everything from car loans, credit cards, mortgages, auto insurance and other products. However, what is important is that we must monitor our credit score to determine if we are still on the right track or simply to know the latest updates.
There are three credit reporting agencies that you can use to monitor your credit. Each agency uses a slightly different format for your credit report, but they all work primarily with the same type of information. The three major credit reporting agencies are Equifax, TransUnion, and Experian. Other companies are authorized to publish the report, but their data and estimates are based on data collected by one of the three reporting agencies.
Below we will share some of the best ways to monitor your credit score.
- One of the ways to monitor your credit score is to compare the current account balance vs. the available account balance. Most people do not realize this, but by carrying a high balance affects your credit score negatively. Anything more than 80% of the available balance is considered “high,” and consumers should try and make their current balance to drop below that percentage.
- Fraud Warning: call one of the credit bureaus and ask them to place a fraud alert on your credit for 90 days. The agency you choose would inform the other credit reporting agencies. Everyone, including you that try to get a loan, must prove their identity before a loan can be approved, which is a challenge and a deterrent to identity theft.
- Check your credit report every year: you are entitled to a copy of your credit report from Experian, TransUnion and Equifax each year. Also, you can get a free credit report if you are denied a line of credit depending on your score, provided that the request for a free report is made within 60 days of the denial.
- Use free resources: Credit Karma is one of the free resources that allow you to monitor your credit score. Credit Karma has a beta feature that allows you to see exactly what financial institutions can see when they view your credit report. Other features include the use of credit usage reports, and these recommendations are available for those looking for loans and the ability to read reviews about various financial institutions. Credit Karma not only allows you to monitor your credit report as often as you need but they also have a ton of other resources available to help you improve your credit score.