Credit Score

Why You Should Check Your Online Credit Score Regularly

Recently, there has been a rapid increase in identity theft globally. Sometimes thieves can use the stolen identity to take loans from fintech apps with the express purpose of defaulting. Other times, hackers can use stolen identities to clear owners’ bank accounts without them knowing. Checking your online credit score keeps you abreast of your situation of things financially. In addition, it gives you more buffer time to deal with any possible case of identity theft.

Checking your online credit score regularly is essential. There is no reason for you not to as it won’t cost you anything. If you can’t manage this regularly, updating yourself 2-3 times a year is the least you must do. Doing this is like a radar mechanism. The more frequently you check, the faster you can detect signs of being a fraud victim.

Apart from tracking fraudulent anomalies, checking your online credit score also allows you to know your creditworthiness. And the process is free, speedy, and highly optimized. Unfortunately, most often than not, people only check their online credit score if they want to apply for a loan or a credit card, which should not be the case. Don’t let this be you!

Online Credit Score Check and Calculation

You don’t want to have a low or abysmal credit score. It is a quotient that allows your bank, lenders, and maybe your employer to evaluate you financially. Even though you might already know how credit scores are computed, let’s do a quick recap:

  • Credit history length
  • Payment history
  • Amounts owed
  • Number of inquiries
  • New credit
  • The creditworthiness of each credit payment (whether or not it exceeds the minimum repayable amount)

There are certain subtleties that you have to understand about your credit score. When you have a sub-optimal credit score, it can interpret many things in real life. For instance, should you attempt to open any new accounts, your lenders or your bank might reduce your credit score significantly because it means that you are in trouble financially or your financial situation is not strong or stable.

When you owe money, especially if you are using a credit card, it is also essential that you ensure that you don’t overspend after your maximum credit limit. Therefore, the instant you are close to or hit 50% over the max credit limit, do well to hold back on using your credit card(s) and start repaying your credits as soon as possible.

While you can’t guarantee that your identity isn’t stolen, you can significantly mitigate the adverse effects you’ll suffer should you catch it early. Nothing works better than tracking your credit score to monitor anomalies. You can consider opting for Experian to automate the delivery of your online credit score either by traditional mail or email.

Posted in Credit and Debt, Credit Reporting, Identity Protection and tagged , , .

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