Your credit score is an important indicator of your financial health, and having a good score makes it easier to secure loans, credit cards, and other forms of financing. Checking your credit score regularly is an important part of maintaining your financial health and avoiding costly mistakes. In this article, we’ll discuss the basics of credit scores, the importance of checking your score, and the best ways to check your credit score without having to pay.
What Is a Credit Score?
A credit score is a three-digit number that lenders use to estimate the risk of lending you money. The score is based on a variety of factors, including your payment history and debt levels. Generally, credit scores range from 300 to 850, although specific scoring models may have different ranges. A higher credit score typically indicates a lower risk of default, while a lower score implies that the borrower might be more likely to default on a loan.
The Importance of Regularly Checking Your Credit Score
Checking on your credit score gives you the opportunity to review the data and information used to determine the score. It also allows you to spot any mistakes that may have been made when calculating the score and work to correct them. Additionally, it’s a good way to get a sense of how ready you are to apply for a loan or credit card and make sure that your score is in the right place.
Checking your credit score will also help you monitor activity in your credit file. This may include any fraudulent activity that can result in an account being opened in your name without your knowledge. Monitoring your credit score and credit report can help you spot signs of identity theft before any significant damage can be done.
Finally, checking your score regularly can help you recognize how your financial decisions could be affecting it in real-time and give you the chance to make any corrections before your score suffers more serious damage.
Resources for Checking Your Credit Score
There are a variety of online and smartphone platforms available for checking your credit score. Each of these resources provides a slightly different experience and uses their own personalized algorithms and score calculations.
Online Credit Report Bureaus
Free annual credit reports from the three major credit bureaus—Experian, Equifax, and TransUnion—are available to every consumer in the United States. An individual credit report will include different information than the one-time credit score that’s available with some bureau services.
When you order one of these reports, you can also subscribe to credit monitoring services. This can help you stay informed of any activity that could affect your credit score, such as new credit inquiries, account openings, and other changes.
Credit Card Companies
Many credit card companies now offer credit score monitoring services as part of their cardholders’ benefits. All you have to do is check the card’s website or app for the latest information about your score. In many cases, the credit card company may even offer personalized advice related to your score.
A few of the most popular credit cards that offer credit score services include:
• Chase Freedom: This card offers free access to your FICO credit score.
• Citi Double Cash: With the Citi Double Cash card, you can access your FICO score and receive updates every month.
• Discover it Cash Back: Cardholders can access an Experian credit score for free.
• Capital One Quicksilver: These cardholders can access their Experian VantageScore 3.0 credit score for free.
Financial Websites
You can generally check your credit score at no charge using financial websites such as Credit Karma and Credit Sesame. In some cases, you may have to sign up for an account in order to view your credit score. These websites offer both free credit scores and credit reports, something that can’t be said of all other online credit score services.
Smartphone Apps
Smartphone apps are also a great way to check your credit score for free. Many of the same providers listed above have credit score apps available. Mint, WalletHub, and CreditWise are three of the most popular options. All three apps will give you access to your credit score, credit report, and credit monitoring services.
Staying on top of your credit score is essential if you want to maintain good credit and avoid becoming a victim of fraud or identity theft. There are a variety of free resources available to make it easy to check your score without having to pay, so take advantage of them and keep your financial profile in good standing.