In this world of commercial temptation and consumerism, it is very important to maintain a few things. Your credit score is linked to your quality of life – try being unable to get a credit card or a loan for a new car or a holiday. But, do you know everything that helps you to keep your expenses in check and maintain a strong credit score?
With new apps coming out all the time, it has become an obsession to check your credit score, but just how often should you be checking your credit score? Most people are used to the myth that frequently checking your credit score negatively impacts your score.
Here are some easy and simple steps from credit repair answers, which will help you learn when to check your credit score and how it helps you. Following these steps is pretty easy and if you can implement these ideas in your life and practice them, you are sure to benefit in the long run.
What is a Credit Score?
Now, you can never understand what your credit score is if you don't understand what a credit report is. A credit report is simply a report which shows lenders how adept you are at handling borrowed money. They look at how much money you have borrowed, whether you have paid on time and if you have missed any payments. Lenders use this information to evaluate how likely it is that you will pay back the credit.
All kinds of credit related transactions are contained within your individual reports. If you have a loan or a credit card, you will get credit reports and scores, usually updated on a monthly basis. Credit scores are calculated from the information in your credit reports.
Credit Scores vary from person to person. Everyone has their own, individual lifestyle habits. Some are more eager on saving, investing and multiplying, while some, through no fault, may have defaulted on a loan or credit card due to unfortunate life circumstances. Different reports have different rating scales, however it is always a number – with the higher the number, the more likely you are to first obtain credit, and secondly get a better deal.
Managing money is becoming extremely difficult as new waves of consumerism constantly strike our world. Everyone wants the newest smartphone or a brand new car, and often the idea of getting a loan or a credit agreement to fund these is too good to turn down. You can manage your credit reports and score by not borrowing more than you can afford to repay and avoiding short term loans and payday loans.
When should you check your credit score?
Many who are new to the world of credit, are paranoid about its maintenance. You should always keep in mind that checking your credit score on a regular basis is not needed. Your score won’t change during the month, so if you want to keep track, checking it monthly is a good option.
Most apps and credit check companies will tell you when your new report will be ready. Therefore deciding when to check your credit score depends entirely on you. Regular checking of your credit report won’t do it any harm, however multiple applications for credit in a short period of time can.
Identification of day-to-day changes can be very time consuming and frustrating. Instead, you should check for patterns or trends in your reports which you think are affecting your credit score in general. Most credit reports now offer in-depth analysis of your credit agreements – so you can choose to increase payments on a certain loan or credit card to boost your credit rating.
If you are looking at a new loan or credit card you will want to check your credit report before doing so. Most apps and credit reports are now able to tell you which loans and credit cards you are likely to be accepted for before applying; thus avoiding hurting your credit score with a declined application.
Times you will want to check your credit score.
· When you are opening a new credit card.
· When you are applying for a mortgage.
· When you are applying for a loan.
Don’t get obsessed with your credit score
Higher credit scores will obviously relax your nerves. This doesn’t mean you should get obsessed with your credit score. Even when you are in a stable financial position, it is important to track your credit scores and keep yourself updated. But checking your score every day can lead to anxiety and stress. If you are building your credit score, it may be worthwhile to check your score every other month, as opposed to the disappointment of not seeing it rise as fast as you may wish.
Keep checking monthly and manage your finances efficiently and smoothly and you should see your credit score rise.
How do you check your credit score?
There is no fixed time to check your credit score. You can check your credit score anywhere and anytime. You can get these reports from any of your preferred credit reporting agencies such as ClearScore or Experian. These reports are helpful as they tell you when you have any changes coming up, so you know when to login to see any changes that are positive or negative on your credit score.
If you are struggling with debt and are unable to pay, this will affect your credit rating and according to the Government the best option may be a Debt Management plan. Your credit rating will be affected, however once all of your debts have been paid off you will be able to work on building it all over again.