Things You'll Need:
- Three credit reports
- Internet access
- Identifying information: social security number, address, email. Only give this information out when YOU initiate contact on secure sites or with the credit reporting agencies phone systems.
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Step 1
Don't be afraid to monitor your score because you don't have all the facts.Dispelling myths and getting the facts about credit score monitoring:
*It doesn't hurt for YOU to find out your credit score. About every three months is an acceptable amount of time to check your score. If OTHER institutions are constantly checking your score, if you are applying for a lot of loans, etc, it can damage your score. Companies do understand that big loans may generate a number of inquiries.
*It doesn't cost any money to get your credit REPORTS, once a year from each of the reporting agencies, Transunion, Experian, and Equifax.
*It will cost money for you to get your credit score from all three agencies, but there is a way that you can get your credit score from one agency for nothing! Within about a 15 point deviation you will have a picture of all three scores, using that one score as a base. -
Step 2
*Get your free credit reports! You can go to Equifax, Experian, and Trnasunion online and order your FREE credit reports. You can also find the phone numbers and addresses to call or write to in order to get these scores. You will be asked to give your social security number, because that is how all credit reporting agencies keep track of your information.
*Once you have your reports, read them carefully to see if any glaring errors have been made, and you will also see who requests information about you, for example, you should see some or all of your credit card companies, and department store charge accounts. However, if you see someone requesting information and you do not have an account with them, contact the reporting agency immediately.
*You will also see if various companies are reporting late or insufficient payments. Late or insufficient payments will lower your credit score. Watch out for those companies and rectify matters with them to increase your credit score. -
Step 3
Crditkarma.com is a useful tool to monitor your credit score!*Obtain your free Transunion score via a third party website, www. Creditkarma.com. (It is free because on the website you can view credit offers for people in your scoring range. You will not receive annoying emails, you do not have any obligation to look at the offers, but they are provided. Some may find them helpful, as they are geared to your score range and improving it.)
*Once you set up your account with them, they will allow you to check your credit score from Transunion for free, as often as you want. Again, you must give your SS number, as that is how your data is tracked.
*Creditkarma also provides tracking for your individual score, dating from your first use and showing a month by month grid with data points for each subsequent time you monitor your score.
*Creditkarma.com will also show your score in comparison to others in the country and other demographics you can select. -
Step 4
*Monitor your credit score every few months.
*Once you obtain your three reports and your free score, you will have an idea of your credit score. You will be able to check in every three months (a suggested timeline) and watch your score.
*If you see your score dropping, consider if you have had any lines of credit decrease, been late with payments, opened new accounts, or acquired new debt. If you have not, take steps to contact your credit reporting agencies and check in with your creditors. See if unauthorized charges have occurred.
*If you see your score rising, you will know that you are paying off debt and managing your accounts successfully.
In any case, monitoring your credit score gives you an idea of what financial picture you present to credit agencies, money lender,s mortgage brokers, and banks. Monitoring your credit score helps you view yourself in terms of whether or not you present a good financial risk and will benefit you in understanding your financial picture further.
