KEY POINTS
- Before purchasing a home or car, make sure to review your credit score.
- Marriage or divorce can be a good opportunity to assess your current credit status.
- It is probable that you can view your credit score by checking with your bank or credit card provider.
Many people find credit scores confusing if they are not involved in the field of personal finance. It can be unsettling to think that a single three-digit number can significantly influence your life. However, it is reassuring that it is relatively simple to review your credit score and obtain the necessary details to feel comfortable when seeking a mortgage. credit card , or car loan.
Here are three instances when you should review your credit score.
Contents
- 1 Before requesting a loan
- 2 When you are experiencing a significant transition in your life
- 3 If you believe that your financial information has been exposed or tampered with
- 4 What methods can be used to verify your credit score and report?
- 5 Is there a negative impact on your credit score when you check it?
Before requesting a loan
Creating a detailed plan is beneficial when seeking approval for a loan. Certain forms of borrowing, like purchasing a house, require a significant amount of time and effort. For instance, in my case, it took me two years to prepare for buying a house, which involved clearing debts, accumulating savings, and searching for the right property. mortgage .
Before applying for a new credit card, it is important to do some research first. This includes checking your credit score. Lenders typically conduct a thorough credit check to assess your financial standing, so it is wise to check your score beforehand.
Knowing your credit score can help you predict the interest rate you may receive for a home or car loan, and determine if you meet the requirements for a specific credit card.
When you are experiencing a significant transition in your life
Planning to tie the knot or go through a divorce? These significant life events can have an effect on your financial situation. Therefore, it is advisable to review your credit score during this time as being informed is empowering.
If you have a wedding coming up, it’s important to ensure that you are financially stable before merging your finances with someone else. It is recommended to keep your own accounts separate, particularly for women, as financial abuse is a prevalent issue.
It is important to check your credit report to see if your former spouse is not meeting their obligations to make timely payments on joint credit accounts. It is better to discover this issue early rather than after it has already affected your credit score.
If you believe that your financial information has been exposed or tampered with
Receiving the dreaded letter informing you that your credit card details were compromised in a data breach following an online shopping transaction is the last thing anyone wants. So, what steps should you take next? Monitor your credit score and once more review your credit report.
By doing this, you can promptly determine if someone has accessed your information and is misusing it, such as by applying for credit cards under your identity. If you notice any suspicious activity, you can take action by placing a freeze on your credit. file a report with the appropriate authorities
What methods can be used to verify your credit score and report?
Great news! It is not as difficult as you might think to review your credit score and credit report. You can probably find your credit score through a bank or credit card company that you are already a customer of.
The challenge will be to locate a service that provides your FICO® Score at no cost, as this is the credit score that 90% of lenders rely on. Although a VantageScore is a useful indicator of your financial well-being, it is recommended to review your FICO® Score for optimal outcomes.
When it comes to your credit report, please go to The website AnnualCreditReport.com. You have the opportunity to check your credit reports from the three main consumer credit bureaus once a week at no cost. Take advantage of this free service to identify any mistakes and ensure that the reports accurately reflect your credit information and accounts.
If you identify an issue, you can promptly ask the credit bureau to take action. Correcting mistakes can improve your credit score, especially if those mistakes were causing you to appear as if you were behind on payments.
Is there a negative impact on your credit score when you check it?
No, conducting a personal credit score check is considered a soft inquiry and will not negatively impact your score in any way. There is no risk of losing points, and you will gain valuable insights. What could be more beneficial than that?
