Free ways to check your credit score
Are you the kind of person who loves to keep up with your credit score, or do you prefer it to come to you as more of a surprise (which we don’t recommend)? Either way, you will have to know your credit score at some point in your life, and it’s better to be prepared for that day. We know you’re on a budget, so here are some ways you can track your credit score for free.
Understand how it works
Before you check your credit score, you need to know how your score is determined. Your score is based on a number of factors: how much debt you owe, the status of debts you have paid in the past, the length of your credit history, and a few other things. Basically, your credit score is a snapshot of how reliable you are when it comes to paying back money you have borrowed. For example—if you currently have a lot of debt, your credit score may be lower, even if you have consistently repaid loans in the past.
Why does my credit score matter?
You have an apartment you love, a car that’s paid off, and no student loans—so why do you want better credit? First, it’s important to remember bad credit can follow you for a long time, as in several years. That means you need to plan now for the future. You should also remember your credit score can affect a lot of aspects of your life, like renewing a lease, buying a house, or even getting a job. Your credit score is not just about how much money you have—it’s about how dependable you are in repaying your debts.
Where to check for free
There are a few services that allow you to check your credit for free. While you may be limited in the number of times you can check your score for free, these services are still reliable resources for being able to track your credit score on a regular basis.
Annual Credit Report: You are entitled to a free credit score every year through the Annual Credit Report service. If you’re not taking advantage of this report, you should start. A) It’s free! and B) Even if you have great credit, no credit, or are currently living off the grid where no one can find you, it’s nice to check in once in a while and make sure your score has not undergone any unexpected changes in the last year. There are no downsides, so sign up for this service ASAP.
Equifax: This service currently offers six free reports a year. This is frequent enough to help you stay on top of your credit score, but not so frequent that you will be getting updates every day. If you want a way to keep tabs without notification overload, this might be the right choice for you.
Credit Karma: This is an option that’s grown in popularity over the last few years. With the ability to check your score anytime, the Credit Karma service is useful for those who like to track every change in their credit. You can sign up for email or text alerts, and download the app to get even more updates and info.
Other places: Did you know your credit card statement probably has your credit score on it? So do your mortgage documents, and your bank can sometimes tell you more about your score. These are great and easy ways to find your current score and see how your credit is improving.
There are various options for checking your credit score for free, but starting with one of the examples here may be a great way to dip your toe in the water, so to speak. Of course, you can always do some research on your own and look for even more choices that allow you to check your credit for free.
Your credit score will change (but not how you think)
Credit scores aren’t always consistent from service to service. Different credit bureaus use different criteria to determine your overall score. So, you may see one number on your bank statement and receive a different number from your annual report. Be sure to check the date of the report, as that can also account for any discrepancy you see between scores.
Be cautious about over-checking
It’s tempting to run your credit score all the time, whether you are just curious or even trying to apply for something small, like a store credit card. Be careful about running your credit too often (aside from checking through services like we mentioned above) because this can harm your credit rating. As long as you keep an eye on your spending and debts, you can get a general idea of how your credit score is faring for at least a few months at a time.
Managing a credit score is never easy, but it can be done with the right resources and a little planning. You don’t have to avoid it—you don’t even have to pay for it. Keep up with your credit so your future can remain secure.