How to Check Your Credit Scores
Why It's Important to Check Your Credit Scores
Your credit history, as reflected in your credit reports and scores, can directly affect your ability to:
- Qualify for loans
- Secure favorable interest rates
- Rent an apartment
- Obtain insurance
- Get a job
How Credit Scores Are Calculated
Generally speaking, credit scores are calculated using five factors:
- Payment history
- Amounts owed
- Length of credit history
- New credit
- Credit mix
How to Check Your Credit Scores
There are several ways to check your credit scores:
Free Credit Reports
You are entitled to a free credit report from each of the three major credit bureaus (Experian, TransUnion, and Equifax) once per year.
To request your free credit reports, visit www.annualcreditreport.com.
Credit Monitoring Services
There are a number of credit monitoring services that offer free or paid subscriptions.
These services will typically provide you with:
- Regular updates on your credit scores
- Alerts about changes to your credit reports
- Identity theft protection
Your Credit Card or Bank
Many credit card companies and banks offer free credit score monitoring as a perk to their customers.
Check with your credit card company or bank to see if they offer this service.
Conclusion
Checking your credit scores regularly is an important part of maintaining good financial health.
By knowing your credit scores, you can identify any potential problems and take steps to improve them.
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