You must know how to check your credit score because credit score is not static, they change with time. And your credit score can affect your credit. Your credit score gives you an insight into what you are doing well. And it also offers you guidelines on how you can improve your credit.
Your credit score is an important part of your financial life; so it is important you check it regularly. A credit score is a three-digit number that ranges from 300 to 850.
It represents your creditworthiness. It shows the level of risk that is associated with giving credit or a loan to a borrower or a customer.
If your credit score is low, it poses a higher risk and it shows that the customer may default in paying back the loan.
But if your credit score is high, it shows the lender that you will be able to pay back your loan.
Credit scores can be ranked as excellent (720 and above), good (690 – 719), fair (630 – 689), and bad (300 – 629).
And lenders use the rank of your credit score to assess risk ranging from prequalification of customers, market expansion, and credit evaluation.
Your credit score plays a big role in your financial life. The state of your credit score also determines if you will be able to receive loans or not.
So, you should check your credit score regularly, and if you do not know how to check your credit score, read below to find out how you can check it.
Ways to Check Your Credit Score
There are different ways you can check your credit score. Below are some ways which you can check.
- Visit a nonprofit credit counsellor.
- Check it with your card issuer or lender.
- Check it on a free credit scoring website.
1. Visit A Nonprofit Credit Counselor
You can visit a nonprofit credit counsellor to check your credit score. These credit counsellors help pull your score for free, and they assist in going over the details with you.
2. Check It with Your Card Issuer or Lender
It is possible to also check your credit score with your credit issuer or lender. Most credit card companies complimentary credit scores that you can check by either logging into your account online or by receiving your monthly statement.
3. Check It On a Free Credit Scoring Website
To check your score, you can visit a free credit scoring website. There are diverse websites that you the opportunity to check your score without paying.
But you need to check the terms and ensure you agree to them before signing up. Also, some of these websites offer educational scores that you to understand how you are doing credit-wise.
Why You Need to Check Your Credit Score
You must know your credit score, that is why it needs to be checked always. Credit scores are not static; they change, so if you do not check them always, you will not know what your credit score is.
Your credit score is regularly updated, every month it goes up and down. And it may be changed frequently, it depends on who is reporting.
When you know your credit score, you are more likely to make good decisions about your finances. For instance, when you check your credit score and you find out you have a high score. It will make you look like an attractive and confident applicant to creditors.
But when you check and find out you have a low score, you will become more cautious about applying for a loan as there is a big chance you will get rejected. So, knowing your credit score will inform you of your stance.
What to do After Checking Your Credit Score
After checking your credit score, it does not just end there. The result you get will determine if you should improve your credit score or if you should ensure it does not go down.
If you check your credit score and it is high, you must ensure that it does not go down. But if your credit score is low, you have to improve it. To improve your credit score, follow the steps below.
- First, check your credit score to know why it is low.
- Then pay up your credit to lower your credit utilization percentage.
- You need to avoid making different credit applications in a short time.
- To improve your credit, you should ask for higher credit limits.
- Keep your accounts open if you do not have a good reason to close them.
- Pay all your bills on time to improve your credit.
By following these steps above, you will be able to improve your credit score.