Finding Your Credit Score
Most people that are living and working in the US are at least fairly aware of the importance of credit. Good credit is necessary for a large number of reasons that range from opening parent assisted loans to getting cheap car insurance protection. Because credit is so important, it is essential that you do your best to manage and keep your credit score high. The tips in this article should help consumers in the US understand and find their credit score, and we have also provided some hints that will help you keep your score at a competitive level.
What are Credit Scores
Credit scores are also commonly called FICO scores and are a direct reflection of your financial responsibility. Your credit score will be a number between 300 and 850, and a great score is going to be higher than 700. A number of different things can help you build or injure your credit. For example, if you decide to purchase a new computer and you decide to finance your purchase and make monthly payments, you can build credit if you make these payments on time. On the other hand, if you are late on your payments you may find that your credit score will take a dip. People that are looking to make the most of their credit and achieve a good credit score will want to do some research and learn about all of the decisions that can have an effect on credit.
There are several ways to determine what your credit score may be. In the US, there are three different companies that are responsible for putting together your financial information and issuing you a credit score. These companies are Equifax, Experian and TransUnion. Each of these companies will have their own methods for putting together your score, and you may find that your score will differ between companies. It is important that you monitor your score from each of these three companies throughout the year.
Free Credit Scores?
We have all heard of websites that offer free credit scores, and there is some truth to the claim that you can get a credit score for free. In fact, each of the three companies that are responsible for putting together your scores are required to provide customers with a credit score once a year. However, many people will turn to other websites in order to get a numerical credit score from all three different companies at once. If you decide to use these services, you will typically find that they are not truly free, but rather include a free trial period. After your trial period is over, you should expect to pay an annual fee to continue monitoring your credit score.
While paying a fee to check your credit score regularly can seem like an inconvenience, it is still a good idea. When you consistently monitor credit scores, you will be able to make changes if you see your score start to drop. Also, most of these websites will send alerts and warning to the customers that may be seeing decreases in their credit. These kinds of warnings can help you avoid some serious credit issues.
Credit scores are an important part of modern life in the United States, and you now have the information that you need to understand your score. Finding your credit score does not need to be expensive or difficult. Within minutes, people all over the country can get their score from all three of the major credit reporting companies, and can begin to improve their score and financial future.
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State Guides to Credit Card Laws
- North Carolina
- West Virginia