A good credit score can be an asset when you need it most. But if you don't regularly monitor your credit status, your credit score can become a liability. Have you bothered to look at your credit report recently?
There are three credit reporting agencies: Equifax, Experian and TransUnion; the law says that you may obtain a free credit report from any of these three agencies every year. It's quite easy to get your credit report, you just have to approach the central agency and you'll get a report from all three companies. This central agency is called the Annual Credit Report, and it is available online.
You should make it a point to check this free credit report annually as it plays an important part in your lifestyle and can really help with your expenditures. By monitoring your credit report on a regular basis, you can catch any errors that may have been recorded and see that they are corrected immediately. Also with the increased crime of identity theft, with a vigilant eye on your credit reports, you can catch any funny business early.
There are just a few things you need to know so your credit rating will remain positive.
The first thing you have to remember is to pay within your due date.
Stick within your budget and manage your debt.
Don't forget to get your free credit report annually so that you can correct any errors immediately.
Make inquiries about your report only when absolutely necessary, frequent inquiries could be taken against you.
Reduce your credit card balances if they're limited out.
Having a long credit history can also be advantageous; if you don't then you can just apply for a new credit.
It is also important that your FICO score is kept high, another reason to monitor your credit report regularly.
Do you know what a FICO score is? Financial institutions have a grading system which they use to see if it would be a good idea to extend you some credit, this is called your FICO score. The higher the FICO score, the better. The scores generally range from 499 - 800 plus.
Monitoring your credit report is one sure way to protect your credit standing. Whether it's a car loan, credit card, or mortgage, your credit score can dictate the interest rate of your new loan. A good credit score can save you money.
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