If you were to ask 100 people on the street what they know about their credit, you would likely get a lot of blank stares. Most people know enough to say that they have either “good” credit or “bad” credit, but they don’t know much more than that. The overwhelming majority of people not only don’t know what their actual credit score is, but they don’t know how it is calculated either. So, let’s take a look at how you can bring your bad credit score up and how you can watch your score for free!
There are several major credit bureaus that track the credit score of pretty much every adult in the United States. You might have to call all three or four of the major companies to find out which one has your score, but once you do, you can request a free credit report directly from your credit bureau once per year. It is a little known perk that every American has the right to, but almost no one actually does. Why is it important to know your credit score? Simple. It lets you know where you stand in the eyes of banks, credit card companies and other groups who might be ready to offer you credit. If you are thinking about applying for a credit card, getting a home loan or buying a car, it is very important that you know what your score is and how it will affect you.
Another important reason for keeping an eye on your credit score is the fact that often times credit bureaus make mistakes that can negatively affect your real credit score. Items might get reported to your credit score that are inaccurate or even completely false. No one is going to check your report for you to make sure it is accurate, so that means you have to do it yourself. By catching an inaccurate entry on your credit report, you can improve your credit score instantly, and that can mean the difference between a disappointing home loan or credit card and a good one!
There are also other ways you can help to improve your credit by ordering your one free annual credit report. Sometimes, things get left on your credit report longer than they should. If you have ever declared bankruptcy, there is a limited amount of time that it can appear on your credit score, but again, there isn’t anyone else out there looking out for the accuracy of your credit score, so it is up to you to make sure that it is 100 percent accurate.
Finally, by checking your annual credit report, you can learn what a good credit score is and what a bad score is, and how far you have to go until you reach the promise land. In almost all cases, a score of 740 is considered “good.” When you order your credit report, you will receive a basic primer on what a good score is and easy ways you can achieve a respectable credit score.
