Even if your bills are paid on time, there could be several other things that could impact your credit score and reports. The truth is that your scores cannot be estimated by any kind of software where you can input some data and it tells you the score. Well, at least such software is not available for general public in the market.
The easiest way to find out your score would be to utilize certain specialist services that will not only provide you with instant credit score number, but will provide several other value added services that can benefit a person in the long run. These services fetch credit information from different credit Bureaus and present it to you in a structured way. Of course, there is a fee associated with their service.
However, not every service is reliable and accurate. In fact, there are many services on the Internet that claim to provide you with free score and then start charging your credit card without your approval. This results in a lot of confusion and frustration for people. These frustrated customers will then have to spend their valuable time trying to do charge-backs and get their money back. Having said that, not all companies that claim to provide a free score are actually fraud. There are quite a few good ones out there, but little difficult to identify.
There are few companies that can provide you credit reports and scores from all three credit Bureaus and few other helpful services. Legitimate companies generally provide you a risk free trial period where you can cancel the trial without getting charged (i.e., if you are not satisfied with the service).
A definite way to find a good company that could instantly tell you the credit score estimate will be to check with any reliable sources (like friends and relatives) who may have already used such services. To avoid risk, its suggested to register with companies that can provide a free trial. Another option would be get your annual credit report, but the downside is that it gets generated only once in a year. So, it may not have the most recent information.
For certain people, not being aware of their credit score estimate would mean that they do not precisely know what actions they can take to improve their score. The best bet for such individuals is to use a reliable paid service that can provide them with accurate credit score information and help with consistent credit monitoring. However, being able to choose the right service is a real challenge.
Your credit score is an important number in your credit report, which determines how responsible you are as a borrower. It is a three-digit number between 300 and 850 that is calculated to measure your creditworthiness. This is a piece of information credit and loan evaluators refer to when considering an application for approval. Basically, the better your score is, the better your chances are of getting approved for than loan or credit application. On the other hand, a bad score may give you difficulties in getting approved for utility applications, as well as being employed by companies who do intensive background checks. Your credit score may entail serious effects on your finances and personal life. Hence, it is very important to be aware of it, especially when dealing with identity theft protection.
One way of checking your score is to approach an institution that offers official FICO credit score. This will give you an idea about how well you’re currently doing in terms of credit management. But aside from knowing your credit score, it is also important to be aware of the factors affecting it. The following are the things that affect your credit score range:
- Payment history – This determines whether you pay your bills on time, including credit cards, student loans, utility bills, or any other lender or service provider that reports to the credit reporting agencies.
- Amounts owed – This includes the breakdown of your credit balance, and how they compare to the limits of what you’re allowed to take out.
- Years of credit – This identifies the age of your account(s). The longer your credit history, the better lenders can gauge your ability to repay.
- New credit – This determines how many accounts you have opened recently, and how many lenders have inquired about your credit. The more activity, the more it appears you’re about to face a huge debt.
- Types of credit – This is the mix of accounts you have, such as auto loans, credit cards, student loans, or mortgages.
Checking your credit score helps a lot in improving your credit and overall financial condition. This will only be possible if you perform credit monitoring regularly. It is important for a lot of people to know how credit monitoring works to protect you from identity fraud because it’s a practice that is usually taken for granted by creditors. As responsible borrowers, our obligation does not stop at managing our charging habits, but also extends to finding ways on how we can protect our accounts from frauds and scammers. It is important to make sure that our credit score is always in good health so we can be assured that our account is untouched by frauds, and so that we don’t encounter debt related issues in the future.