Understanding the different types of credit scores
The term “ credit score ” is a bit misinform, because there are actually dozens of different credit rating scores out there. There are two systems used to calculate consumer recognition scores :
- FICO® Score (the most widely used by lenders)
Both of these systems have multiple versions with unlike scoring calculations. In addition, there are three credit agency that each count credit scores based on the credit rating report it has for you :
It ‘s surely complicated, but keep this in heed — you don’t need to know all your credit scores. One is enough. The key is to check the right type of score. Since most lenders use your FICO® Score, that ‘s the score you should check .
How to find out your credit score
now, let ‘s look at how to check your credit .
1. Pick a free credit score service
There are quite a few release accredit score tools. If you have any accredit cards, there ‘s a good luck the calling card issuer offers a tool you can use. Remember though that we ‘re not just looking for any sexual conquest. We ‘re looking for your FICO® Score. Many services provide your VantageScore, which is n’t used arsenic much and can be much different. here are two services that provide your FICO® score 8 ( the specific type of FICO® Score most wide used today ) : Both services require you to sign up, but they ‘re exempt to use. You do n’t need to have any Discover credit cards to use its credit grade service.
2. Sign up for an account
After you ‘ve chosen a service, go through the sign-up summons. here ‘s the information these services typically ask for :
- Full name
- Email address
- Date of birth
- Social Security number
You ‘ll besides need to set up a password and verify your e-mail address .
3. Log in and view your credit score
once you have an account, you can log in and find your credit seduce. Most services update monthly so you can always keep up with your current score. These services typically provide information on which factors are positively and negatively affecting your credit rating. Spend some time reviewing this information to see what you can do to increase your credit score. note that you need to have a credit history open and reported on your credit file for at least six months before you ‘ll have a FICO® Score. If you do n’t have a credit score yet, check out starter credit cards to begin building your credit history .
Monitoring your credit
Your FICO® Score will give you an accurate idea of how good your credit is. There are a pair other things you can do to stay on clear of your credit. first, check your credit score every month. That way, you can see if it ‘s progressing and if there are any electric potential issues.
Make sure you besides review your credit reports from the three credit agency ( Equifax, Experian, and TransUnion ). These reports show all the information each chest of drawers has on you, and it ‘s crucial to review them for errors. You ‘re legally entitled to one free credit report per year from each chest of drawers. however, all three bureaus are presently offering detached weekly credit reports through April of 2022. By keeping lead of your FICO® Score and watching your credit reports, you ‘ll be fully informed on a keystone depart of your fiscal health .