Your credit report and credit score determine whether you can get a home, an apartment, an automobile, a credit card or a cell phone and much more. Yet most people don’t even know their credit scores. In a 2013 government study found that 26% of people find errors on their credit report that could affect their scores.
You can get your credit scores for free by trying a credit monitoring service during a trial period. In addition, this service gives you explanations of what actions are helping or hurting your credit scores and what you can do to improve them. They’ll also monitor your credit reports and scores daily for any changes and send you an email alert or text when a change occurs.
About Your Credit Score
Your credit score is calculated based on the information in your credit report. Credit scores allow lenders to make on-the-spot credit decisions based on a 3-digit number that sums up your credit worthiness. There are many credit scoring models in use today; all are designed to rate your likelihood to repay your debts. When you order your credit score, you will also receive an analysis of the factors affecting your score.
Your credit report is a snapshot of your credit at a particular moment in time. However, in reality that information is flowing in and out of your credit report all the time. Credit applications, home and auto loans,
payments, an address change or even an inquiry from a prospective creditor all show up on your credit report, and affect your credit score.
Credit history is the main determining factor of credit today, but there are potential problems that can work against consumers. Some credit reports contain inaccuracies serious enough to cause consumers to be denied credit, a loan or even a job. Keeping abreast of changes to your credit file is vitally important.
Monitoring your credit report is one of the easiest and most effective ways of protecting your credit against errors and fraud.
Monitor your FICO Score Today! We are confident you’ll find it to be a valuable tool for protecting your credit, as millions of other consumers have.
Your Credit Scores & Reports Explained
There are several misinformed opinions on credit reports and in the midst of the current economic conditions in this country, it’s more important than ever to get all of your facts straight. Contrary to popular belief, just because your credit score is below average and what is considered poor or bad doesn’t necessarily mean that you’re messed-up for life.
Errors in credit reports are often difficult and time consuming to correct, even when the errors are not your fault. That’s why it’s wise to review your credit report every year as well as several months before you begin shopping for a credit card, auto or mortgage loan. The most important thing that you can do is get to work on improving your credit immediately! The longer you wait the tougher it’s going to become to get it back to a respectable level.
Your credit reports are maintained by three different companies, often called credit bureaus or credit reporting agencies, which collect and store information supplied by your creditors: department stores, credit card companies, banks, finance companies, and other companies with whom you have accounts. Not all creditors report to all three credit bureaus, so each of your credit reports could be different. (See our book, The Credit Handbook).
Discover more information on credit, credit cards, savings, debt, and become an empowered consumer when it comes to saving money. Debt Wise Solutions has several books that would be beneficial to you. Take a minute and visit our bookstore.
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