What is a Credit Score?

A credit score is a three-digit number that reflects your creditworthiness, or how likely you are to repay debt. It is calculated based on your credit history, including your payment history, total debt, length of credit history, types of credit used, and recent credit inquiries. Most scores range from 300 to 850, with higher scores indicating lower risk to lenders.

Why Check Your Credit Score?

1. Stay Informed: Knowing your credit score helps you understand where you stand financially.
2. Spot Fraud or Errors: If someone opens a credit account in your name or if there is a reporting mistake, your score may drop unexpectedly.
3. Prepare for Big Purchases: If you are planning to buy a home or finance a car, knowing your score helps you gauge loan eligibility and potential interest rates.
4. Improve Your Score: By monitoring your score, you can see how your actions—like paying off debt or opening a new credit card—affect your credit health.
5. Other Impacts: Your credit score may impact other areas of your life. If you are looking for a job, a low credit score may hurt your chances. A low credit score may impact your automobile or other insurance premiums.
   How to Check Your Credit Score

How to Check Your Credit Score

There are several reliable ways to check your credit score for free:

• Credit Card Issuers & Banks: Many major banks and credit card companies offer free credit scores to customers through their online portals or apps.
• Credit Monitoring Services: Websites like Credit Karma, Credit Sesame, and NerdWallet provide free credit score access and ongoing monitoring. Be careful if you are applying for a mortgage. These credit services are not mortgage credit scores.
• Financial Apps: Apps like Mint or Experian provide both score tracking and tips to improve your credit.
• Purchase Directly from Credit Bureaus: You can buy your FICO score directly from credit bureaus like Equifax, Experian, or TransUnion if you need an official report.

Does Checking Hurt Your Score?

Checking your own credit score is considered a soft inquiry and does not affect your score. Only hard inquiries—like those made by lenders when you apply for credit—can temporarily lower your score.

Final Thoughts

Monitoring your credit score regularly is a simple but powerful way to protect your financial future. It takes just a few minutes and could help you catch issues early, make better financial decisions, and qualify for better terms when borrowing. Make it a habit to check your score every month and especially before making any major financial moves.

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