May 21, 2022 6:57 pm

Top Reasons You Should Check Your Credit Score Regularly

In these financially tight and tumultuous times, it is important to check your credit score and that statement is more true today than it ever was before. We live in a society based on credit. You can’t live without it in our world, but that doesn’t mean that it comes easily. What most people do not realize is that keeping on top of their credit score is their responsibility and nobody is going to do it for them.

What is your credit score?

Your credit score is basically a picture of what type of risk you are for credit at a specific moment. The higher score you have, the lower you are as a credit risk. should-i-pay-to-check-my-credit-score High scores make you more viable candidates for lenders. Your score is determined by a complicated mathematical formula. Basically, how much credit you currently have, what your current debt ratio is, and how much income you’re bringing in all factor into creating your credit score.

One of the primary determining factors of your credit score is whether or not you pay your bills on time or not. Remember, especially with today’s financial economics, your risk to a new potential lender is determined by your credit score, and the higher of a risk you appear to be is determined by a low credit score.

So Why Should I Check my Credit Score?

Checking your credit score is important for several reasons. First and foremost, you want to make sure that the credit showing up on your credit report is indeed your credit. In this day and age, identity theft is something that is running rampant. It seems like with the advanced technology we have access to the bad guys who want to get a hold of your money have even more ways to get a hold of your information.

You also want to check your credit score because that is exactly what the vendors are going to be doing. If you are looking at securing financing or simply applying for a credit card it will help you to know exactly what kind of a credit risk you are and how likely you are to getting financed. In other words, if YOU were going to loan money to YOU based on YOUR credit score, would you do it after reviewing the information shown there?

Additionally, no system is perfect, and the credit system is far from perfect. There are 3 credit reporting bureaus, and often on at least one of them, there could be a mistake on your credit report. However, the only way that you can get a mistake fixed is by requesting a copy of your credit report, and the going through the formal charge dispute process with the specific credit bureau. If you don’t take care of these mistakes, they could substantially lower your credit score, which can impact your ability to be approved for a credit card, car financing, or even a home loan. You don’t want to let that happen if it could have been simply avoided by checking your credit score.

Our world has drastically changed over the last couple of years, and with interest rates shooting sky high, it is important that you are in control of your finances and credit history. Knowledge is power, and becoming educated about your credit report is probably one of the best ways to be powerful in the world of credit. By checking your credit score you will not only gain that power, but you will also have a true understanding of how you fit on the credit spectrum.

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