What is my credit score? If you don’t know the answer to this question, you definitely should be asking it. There is a lot of important information surrounding your credit score, not the least of which is what your actual credit score is. Find the answers to all your credit score questions here.
You might be asking what your credit score is because you don’t know what a credit score is at all, or if you even have one. If you’ve ever borrowed money from a bank, if you’ve ever had a credit card, if you’ve ever had a student loan, you have a credit score. Your credit score is derived based on your credit report information which is complied by the credit bureaus. There are three major credit bureaus, and there is a score that goes with each of them. These scores should be similar, but since each bureau operates independently and creditors choose which bureau(s) to report to, there can be variation.
Perhaps you know what credit scores are, you just don’t know what your particular score is. Unfortunately, the answer to this is not something you can just look up. Fortunately, there are agencies that provide free credit scores, like CreditScore.com, which gives you a score plus your report when you sign-up for credit monitoring service.
Anytime you want access to any kind of credit, a lender will look at your credit score to evaluate your risk. If your score is on the high end of the scale, in the 700s or above, you are considered a good risk. Creditors will lend you money at reasonable or even highly competitive rates. If your score is in the mid to low 600s or lower, you will be placed in a higher risk category. Getting loans will be tougher and you’ll pay unfortunately high interest rates.
The first thing you should do when you get your credit report and score is to make sure everything is accurate. An identity thief can completely ruin your credit. The benefit of credit monitoring is that if there is any major activity on your credit report, you’ll find out as soon as it’s reported to the bureaus. If you didn’t initiate the activity, you can inform the appropriate agencies immediately and reduce the damage. But if you did initiate the activity, monitoring your credit provides you with an easy way to stay on top of your borrowing power. Learn how your behavior directly impacts your credit score and work to improve it.