Let’s start with the simple answer: You can check your credit score however often you want to. The common myth that checking frequently negatively impacts your score is just that, a myth. However, just because you can check your credit score whenever your want doesn’t mean that you always should, or, will need to. This simple guide will quickly help determine when and how checking your credit score is right for you.
Understanding Your Credit Score?
In order to understand your credit score, first you have to understand your credit report. A credit report is a record of how you manage your money. These reports contain a history of balances, payments, accounts, inquiries and other pieces of personal information that lenders use to evaluate whether or not to extend your credit. If you have a credit card or a loan, you have a credit report. Credit scores are calculated from the data contained in your credit report. Generally, scores range between 300 and 850. Typically, the higher the number, the better the score. Both credit reports and credit scores are
In order to understand your credit score, first you have to understand your credit report. A credit report is a record of how you manage your money. These reports contain a history of balances, payments, accounts, inquiries and other pieces of personal information that lenders use to evaluate whether or not to extend your credit. If you have a credit card or a loan, you have a credit report. Credit scores are calculated from the data contained in your credit report. Generally, scores range between 300 and 850. Typically, the higher the number, the better the score. Both credit reports and credit scores are important tools when it comes to managing personal finances but it’s not always clear how your score is calculated. See the chart below for an explanation of the components that may make up your score.
When to Check Credit Score?
Deciding when to check your credit score depends on your comfort level. For some, checking annually is sufficient. However, many prefer checking their credit scores monthly or even weekly. It’s important to remember that you can check your credit score as much as you’d like without impacting your score. In fact, tracking your progress may give you more insight into what’s affecting your score. Be careful to avoid focusing too much on day-to-day changes and instead identify overall trends. Some situations in which you may want to check your score more frequently can include: Deciding when to check your credit score depends on your comfort level. For some, checking annually is sufficient. However, many prefer checking their credit scores monthly or even weekly. It’s important to remember that you can check your credit score as much as you’d like without impacting your score. In fact, tracking your progress may give you more insight into what’s affecting your score. Be careful to avoid focusing too much on day-to-day changes and instead identify overall trends. Some situations in which you may want to check your score more frequently can include:
- Opening a new credit card.
- Applying for a loan.
- Starting a mortgage.
- Searching for a new job.
- Building or rebuilding credit.
- Protecting against identity theft.
When Not to Check Credit Score?
Even when you’re in good standing, it’s important to routinely check and ensure that the good credit you’ve established remains stable. If your credit score is on the lower end, don’t ignore it. However, it is not always necessary to check your credit score daily. Checking too much can cause anxiety. Small or daily changes are normal and should not be a cause for concern.
How to Check Credit Score?
There are many ways to check your credit score. By law, you are entitled to a free credit report from all three major credit reporting agencies once a year, including TransUnion, Equifax and Experian. Additionally, some monitoring services allow you unlimited access to your credit information year-round. These services could help you spot inaccuracies, potential fraud and more on your credit report.
Checking your credit score can be easy and stress free with the right tools and online monitoring services.
