You know the value of your credit score – it impacts just about everything you do financially and may even affect your ability to get a job, car insurance, and a rental agreement. Yet, knowing your credit score isn't always that easy. Where do you find it? What can you do to monitor it? Here's how to manage your credit score.
How to Get Your Credit Score
The first step is getting your credit score. To do that, you need to factor in some essential steps.
Free Credit Reports
Your credit report does not contain your credit score, but it includes lots of information that third-party organizations use to produce your score. You have the right to a copy of your credit report every year from each of the three credit bureaus. The three bureaus provide this copy through AnnualCreditReport.com, a tool you can access by visiting the website, inputting some of your personal identification information, and receiving documents.
Credit Monitoring Services
There are third-party organizations you can use – without cost – to help you track your credit score. Credit monitoring services like these do not hurt your credit score but provide you with reasonable access to the information you need.
These credit monitoring services include organizations like Credit Karma and Credit Sesame. These for-profit organizations, though, earn that profit by providing you with ads for credit cards and other loans.
You can choose to purchase paid credit score access if you like. For example, you can pay for credit monitoring from Experian, Equifax, and Transunion, and they will provide you with a copy of your credit report and score consistently.
Bank/Credit Card Credit Score Services
Many times, a bank, credit union, or credit card company will also provide you with access to your credit score. They do this as a part of the service they provide, and typically without charging you to do so. Log into your credit card account online and find out if they offer your score there. It may be under settings or another component of your profile. Your bank or credit union may provide the same type of service. Log into your online portal to get this information. There should be no charge to you for this service.
How to Track Your Credit Score
Now that you have your credit score, you may be unsure how to track it over time. That does not have to be a challenge if you know your options. Tracking your score can help you see how things change over time – if you make a big purchase, it could cause your score to drop slightly. If you pay off a credit card balance, that may help boost your score.
Credit Monitoring Services
Like those discussed above, credit monitoring services often provide the same type of monitoring of your credit score over time. You can sign up for the service and check your score as often as every day (though some accounts have limitations on how frequently they will update you.
Remember that checking your score through these services should not impact your credit score. However, be sure you verify this before using any such service.
Alerts and Notifications
You can also set up your accounts to provide an alert or notification when your score substantially changes. You can do this with all the above services, including credit monitoring services, banks, credit card companies, and even free credit reporting services.
Set up monitoring and notifications to alert you when there is a significant change to your credit report or score. That way, you can log in to verify that this information is accurate and report it as inaccurate if it is.
Benefits of Tracking Your Credit Score
Tracking your credit score offers several benefits, especially when making it a habit. Some of those benefits include:
- Knowing how purchases impact your score can help you to make better financial decisions over time.
- Tracking your score could help you spot identity fraud, such as someone using your credit information without your permission earlier.
- Tracking your credit score can help you work towards achieving your financial goals, such as allowing you to boost your score to qualify for a home loan or to buy a car.
- Tracking your credit score can also help you to see what happens when you pay off debt or use less of it.
- You also want to use this information to showcase how much your financial skill has improved, thanks to your ability to see your score rise over time.
Credit Score Resources
There are a lot of resources available that could provide you with some insight into better managing your credit. The key here is to know that you do not have to pay for any service if you do not want to do so. You can build your score over time with good financial habits.
Credit Counseling Agencies
If you struggle to pay your debts and find that your credit situation is worsening over time, it may be wise to contact a professional for additional help. Credit counseling companies are third-party organizations that work out payment plans between consumers and lenders, and they can help you get out of debt sooner.
Credit counseling agencies can offer educational and financial literacy services as well. You do not have to use their debt management plans to benefit from these services.
Credit Score Improvement Resources
If you want to improve your credit health but are unsure how or where to do so, take a few resources under your belt. Here are a few tools to help you.
- The credit bureaus. As one of the three credit bureaus, Experian does an excellent job providing access to credit information and consumer support. Equifax and Transunion also offer these services.
- USA.gov. This US government website includes information on your rights as a consumer using credit. You can also learn more about credit scoring, reporting disputes, and how to put a credit freeze on your account.
- Consumer Financial Protection Bureau. This is another government-backed organization that can offer you insight into creating, building, and mastering credit usage. They offer a wide range of consumer finance-related tools.
- Fair Trade Commission. If you are having problems with your credit report or disputes with lenders, the Federal Trade Commission can offer guidance to you.
- Financial advisors. You can always turn to a financial counselor for advice on how to build your credit.
Credit Score Dispute Resources
If you find inaccurate information on your credit report, do not wait to take action. The best way to do this is to visit that credit bureau's website and file a dispute directly. If you obtain your credit report from AnnualCreditReport.com, the steps to file a dispute are linked within the credit report. Otherwise, visit each of the three credit bureau's websites and follow the steps to reporting a dispute.