It’s easy to overlook your credit score, but it’s one of the worst financial mistakes individuals can make. Why? Because for consumers and lenders alike, it’s credit scores that act as catalysts in business situations, giving companies or banks a reason to either lend you the money or reject you, flagging you as a risk. It’s not just about borrowing money either; if you have a poor credit score, you may struggle to buy insurance or rent an apartment.
There are a few things to know about your credit score before inquiring about loans or renting an apartment. In this article, we’re going to explore three.
1. Brush Up On Your Credit Score
The first thing to do is to figure out your credit score before doing anything else. Several websites allow you to do this, such as Credit Karma and Credit Sesame. When you sign up with these websites, individuals will receive free credit reports. Experian is another option though this service offers paid credit reports. While these are paid, the reports do come with FICO scores, which is the most accurate measure of an individual’s credit.
2. Stay On Top Of Your Credit Score
Once you figure out your credit score, make sure you stay on top of it, monitoring it regularly for new transactions, debts, and suspicious activity. Most credit services offer customers credit monitoring services, which include personalized report cars to real-time alerts that can show unusual credit activities. It’s essential to monitor your credit score because you want to make sure that you don’t fall too far behind. For instance, if you drop below the 650 range, you will need to seek out assistance to repair your credit. While you want to avoid this situation, you can use credit report services to fix your score. However, remember that maintaining an excellent credit score requires individuals to make their payments on time, so staying alert on all fronts of an individual’s financial life is vital.
3. Protect Yourself From Identity Theft
It’s enough to monitor your credit score, however. Individuals also need to prevent identity theft, which has become extremely common in recent years. Signing up for an identity theft protection plan is recommended and can be found through services like LifeLock and IdShield. With these companies, individuals have the following options: credit monitoring, password protection, and email alerts. These services are affordable and are not limited to those looking for protection against ID theft. These are also helpful resources for those who have already fallen victim to the crime.
Takeaway
Credit monitoring services are essential in more ways than one, from helping individuals monitor their credit score to rebuilding their credit and preventing identity theft. Before signing up with a service, ensure you do all of your homework and seek out the one best suited to you.
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