Credit Scores?
Do you know how to check your credit score? If you aren’t sure how to check your credit score, or you’re unsure of exactly why checking your credit score is so important, take a look at the following guide which will help you understand the basics. Start good personal finance habits now.
What is a Credit Score?
A credit score is the numerical value report assigned to you based on whether or not you are considered high-risk or low-risk to lenders. Credit scores are based on a modeling system which essentially predicts whether or not you are likely to default on a credit loan. Credit scores may be calculated differently depending on who is offering the credit score, however, most credit score models will take into account the following information:
- History of debt repayment
- Current debt
- Age
- Amount of credit inquiries in the past
- Diversity of available credit reports
The better you perform in these categories, the higher your credit score will be.
Why Credit Scores Are Important
Credit scores can impact your life in many significant ways. You will need a good credit score if you want to be approved for credit cards; if you want to take out loans or mortgagees; and so on. In many areas, you will need a good credit score to secure an apartment, make a house purchase, and a variety of other essential actions. In other words, if you don’t have a good credit score, you may find yourself stuck with an inability to engage in credit and loan based activities that make up a normal part of our modern economy and housing market.
How to Check Your Credit Score
There are several different ways that you can check your credit score.
You can check your credit score at a free credit scoring website; these websites typically offer a very basic, limited credit score which is ideal for getting a knowledge of your basic score without much less. most of these free credit scoring websites offer a premium service for an additional fee. However, make sure that you vet the website you’re intending to use before you provide them with any information; never give out your information to an organization that does not seem 100% trustworthy.
You can also check your credit score via your credit card provider. It is extremely common for credit card providers to offer free credit score checks; these credit score checks may or may not include a simple report, such as your credit score history or recent actions which have impacted the score overall. credit cards such as Capital One, Discover, American Express and Citi offer some form of free credit scores. Note: while many credit card companies offer credit score checks, it is usually something that you need to opt-into manually before your credit will start to be tracked through the credit card service.
Finally, you can get your credit score checked if you are in need of credit counseling; credit counselors are counselors who are trained to help people get out of debt. They will run a credit score check in order to get some baseline information before working with you. Remember in general debt is bad. Don’t spend above your income.
