According to a recent poll conducted by the National Foundation for Credit Counseling, it’s been found that most Americans don’t even know their credit scores. About 65 percent of the people in the US haven’t even tried to find their credit scores in the last few years. Although some people do understand the importance of credit scores, there is a need to teach the public about how important it is to keep track of their credit history.
Why Should You Check Credit Score?
If you want to apply for a home loan, car loan, or even a credit card, your lender is going to check on how well you’ve made past payments. That’s what the credit score denotes. A high score means that you’re responsible and you’ve been paying off bills and loans on time.
When you know your credit score, you can negotiate for favorable terms and rates of interest. There are chances that there’s a mistake in your report. That can be potentially disastrous. Knowing how to spot errors in your credit report is a great way to ensure that you know how the system works so you can make the most of it.
Even if you don’t have any plans of securing credits immediately, the free credit score will let you understand your own financial habits. Here’s a few things that you can do to manage your finances efficiently and improve your credit score.
Request a Free Copy of Your Credit Score
Your credit report not only has the credit score but also payment history, account types, usage of credits, and inquiries. You are entitled to receive a free credit report from the national credit bureaus once a year.
Check if The Credit Report is Accurate
Go through the credit report carefully to check for any instances of identity theft. This can be through a wrong social security number or account information or address that you aren’t associated with. Federal Law allows all individuals to challenge and demand any changes to ensure that the information given is accurate. When you know the areas which are inaccurate, you can make changes to provide proper information.
Have A Budget To Control Finances
Every family has a different approach to monitor their expenses. But you can begin with a simple comparison between your monthly earnings and monthly expenses for the past six months. This helps you to stop making unnecessary expenses that can save you a lot of money in the long run. If you can make a habit of collecting the free credit score report every year, it can help you plan out your finances properly. When you know the content of your credit report, that can help you find out where you’re lacking and where you can improve further.
Ensuring that everyone knows what their credit score is as important as everyone knowing their date of birth. It’s a vital part of a person’s identity and financial well being. It should be made a practice to ensure that everyone has this knowledge so that they can make the most of it.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.