How Do I Check My Credit Score?

Today’s economic environment is producing all time low lending rates, which many people want to take advantage of. Rates are dependent on many factors, including the value of the collateral, the type of collateral, and the borrower’s credit history. A person’s credit history comes in two parts: the credit report and the credit score. To keep on top of your credit you should make a checklist that should include the following:

-Sign up for a program with a credit company
-Check my credit report regularly
-Check my credit score regularly

You might by wondering, “How do I check my credit score and report, and what is a credit company?” If you are unfamiliar with credit scores, reports and companies, the following information should be helpful.

What is My Credit Report?

Credit reports supply information on all your past and current credit history. This includes the names and addresses of creditors, dates and amounts borrowed outstanding balances on the account, whether payments were made on time.

What is My Credit Score?

Credit scores, or Fico Scores, are a numerical value given to your credit history. Your borrowing and payment history as shown on your credit report is used to determine your credit worthiness. Lenders use FICO scores as a guideline to assess the risk involved with lending money to an individual, and the scores directly affect interest rates. The higher the FICO score, the lower the interest rate you will pay. Now you know the distinctions between a credit report and score, but you are still wondering, “How can I check my credit score?”

How to Check My Credit Score and Credit Report

Many credit companies have begun offering credit services directly to customers. Companies like myFico.com provide a number of services to choose from, depending on the individual’s needs. Some offer periodic credit reports and credit scores, others send notifications when your FICO scores change, while other services include protection points to prevent and protect you from identity theft. Edit: myFico.com now has a Free FICO® Credit Score Estimator. It will ask you a few questions and then estimate a probable credit score range. I’m not sure how accurate the results are likely to be but hey, it’s free so it’s worth a try.

Technological advances have made keeping track of your credit a lot easier. While protecting your identity can be a difficult task, with the proper protection in place it can be made a lot simpler. Checking your credit report and FICO score on a regular basis will help you keep on top of your credit to get you the best rates when borrowing money, and signing up for a protection plan can prevent losses due to identity theft.