5 Reasons to Check your Credit Score Monthly |
Posted: June 10, 2017 |
A credit score is generally required, as credit institutions refer to them to make decisions on whether or not to sanction loans. Credit scores of individuals are generally ranged between 300 and 850. The closer you are to the upper band, you credit score is good, while the closer you are to the lower band does not reflect well. However, on an average, people tend to lie in the range between 600 and 750. There are various methods to help you check your credit score free. Credit scores are also available for free. By keeping a monthly check on your credit score, you can take steps to rectify poor credit scores and get rid of all worries regarding your credit history. 1. Updating By frequently updating yourself about your credit score, you can know where your credit standing level is at. A monthly update will show whether you have a good credit score or a bad credit score. If your credit score is good, then you can relax. Your financial situation is good and you can pat yourself for keeping up a good credit score. However if your credit score is bad, you should take immediate steps to improve your credit score. By frequent monitoring, you can make sure that your credit score is being maintained properly and you will not have to worry about having a bad credit score. By taking adequate measures, you can take steps to reshape your credit score to make it good. It is also a necessity when you are going to apply for a loan in the near future. 2. Personal Report As your credit score, is your individual score, you are the only one who is going to be affected by your credit score. Your credit score is almost like your bank statement or your credit card. You have to make sure that all data mentioned are recorded correctly, without any error. It shows your financial position which has to be maintained properly and healthily. Moreover, getting a credit score is free and you can make use of this freebie to learn about your credit standing. There are chances of unauthorized use of your accounts or fraudulent transactions taking place. Hence, credit scores should always be checked on a monthly basis. By knowing your credit score on a monthly basis, you can make sure that there is no theft or larceny taking place. There are chances of people using Social Security number for making payments for their purchases. The credit score is the first indication that shows that your Social Security number is being robbed. If the report shows a bad score, you can do a quick check up of your credit history and remove all worries about a poor credit score if you rectify errors. 3. Inaccurate Information should be Reported In case, you have a poor credit score but you are sure that you have not done anything to get a poor score, you have to take remedial actions immediately. Instead of becoming worried about your bad score, you have to take steps to find out what is wrong with the scoring and take immediately steps to rectify it. Make sure that all information is correct regarding your credit score. This includes your Social Security number and your account number too. As your credit score is an essential requirement that is going to speak on your behalf about your financial position to lenders, making sure that your credit score is correct, has to be made as a monthly habit. In case you find anything inaccurate, you can always submit all disputes by following the instructions provided. Contact information and toll-free phone number, as well as e-mail address are some ways of contacting the required authorities and getting all information rectified, so that you can use the credit score anytime, whenever it is required. Inaccurate information may mean poor credit scores. This in turn, will affect the sanctioning of the loan and the interest rate charged on such loans. 4. Mortgage or Loans If you are in need of a home loan through mortgage loan or to pay for other expenses through personal loans, you need to apply to banks or other financial institutions. With a good credit score, you can easily get a loan from banks, which charge a lower rate of interest. However, if the credit score is bad, interest rate is high and chances of getting a loan gets tougher. There are many financial institutions which are willing to provide loan even for those who have bad and poor credit scores, though the interest charged on such loans are much higher. Hence steps should be taken to repair the credit scores to get a better credit history. 5. Free Credit Monitoring Service You have all authority to get a free credit score report every 12 months. There are many credit bureaus which provide free annual credit scores. Make use of these freebies and also make it a habit to keep a check of your credit score every month. It is almost like a doctor’s visit, which has to be regularly made. It just takes about 10 minutes to get your credit score, which will be very useful , when you need money to buy a house or get a loan. It helps to know how much you can borrow If you have never made a check on your credit report, you should check it immediately. Making it a monthly habit to check up on your credit score is necessary to know your credit standing. Keeping a monthly check on your credit score, shows that you are interested in your financial standing. You can visit Credit Sesame for further details and to repair your credit score to make it good. If you have a bad credit score, it has to be immediately set right to make you financially balanced. Hence, by referring to your credit score on a monthly basis, you can make sure that even if you slip down marginally, it is time to immediately take drastic steps to restore your credit score.
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