It Helps to Check Your Credit Score
One of the most important pieces of information that is used to determine your credit worthiness is your credit score. Your credit score is assessed when you apply for a line of credit or a loan. It is used by lenders, financial institutions and any other organizations that lend money. Having a good credit score means saving money on interest payments over the life of the loan. A bad score can lead to being denied or credit on less than favorable terms.
Check credit score at least once or twice a year to always have a good idea of your financial health. Even if you don’t have the need for credit anytime soon, knowing if it is available will make you a more informed buyer in the future.
Credit scores are based on the data available when they are requested and as such, new data or changes in your data can cause the score to either rise or drop. There are a number of factors that effect your credit score, like how much of your available credit are you using or records of late payments. Opening too many credit accounts at once can lower your credit score. Lowering you debt can help to increase your credit score.
The question arises, what’s the frequency at which you should check your credit score? Everyone is entitled to an annual free credit report, but not a credit score. There are services that, for a fee, will give you unlimited access to your score.
For most people, it is advisable to check your credit score whenever you are thinking about a major purchase such as buying a new house. Other qualifying events like buying a new car or applying for a job can be reasons to check one’s credit.
Checking your credit regularly and seeing if there are any negative items allows you to correct the situation. Also, a check of your credit report every so often will alert you to any errors or possible identity theft.