Should I be Monitoring my Credit? |
By Laura Gutmann on November 16, 2010
.jpg.aspx) What is a credit rating or score?
Your score indicates your overall financial health and tells potential lenders whether or not you have been responsible with your financial choices in the past. It also assesses your current level of debt. The way your score is calibrated may vary slightly by company; however, in general, your score will range between 300-850 and anything above 700 is considered to be a very good score.
Should I be monitoring my credit?
There are many good reasons to keep an eye on your credit rating. If you plan to make a major purchase, your credit score is one of the first measures that lenders will consider. Decisions like getting approved for an apartment or a credit card depend on having a decent score.
This information can be especially helpful if you want to improve your score. You should take a careful look at the items that are dragging your rating down. Many standard credit reports will give you tips that indicate where you are falling short of expectations. Perhaps if you just paid off one of your loans, or reduced a certain portion of debt, your score would substantially improve.
You also want to check your records carefully to make sure that your financial information is being reported correctly. You should make sure that it is a truthful representation of your past spending history. In addition, if someone is fraudulently using your identity, a credit report will alert you to this problem. For example, if a credit card has been taking out in your name, you might not even know about it otherwise. Examining your credit report will alert you to any red flags and help protect you against identity theft.
How can I see my credit score?
The top three credit monitoring agencies are Experian, Equifax, and TransUnion. You can easily go online to access your information. The federal government makes this information readily available to you through the Fair and Accurate Credit Transactions Act. As a result, you can link to all of those services through a website created for that purpose: www.annualcreditreport.com.
For an additional fee, these agencies may offer regular credit monitoring on a weekly or a monthly basis. If you are concerned about fraud – for example, if you recently lost a wallet with your Social Security Card in it – this may be a good idea. However, usually checking your credit score once a year will keep you up-to-date enough to have a general idea of your financial situation. Agencies typically charge at least $15 a month for their enhanced services, so you will have decide if that extra expense is worthwhile.
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