Maintaining a solid credit score is important for any individual who is looking to borrow in any capacity‚ and credit score monitoring is one basic way to keep yourself acquainted with how you look to lenders who you may be interested in working with. Whether you want to open up a new line of credit‚ are interested in financing a loan or there is a car you have your sights set on that you can't pay for in cash‚ you’ll need to have an acceptable credit score to make any of these dreams a reality.
There are many different credit scores assigned to you. Each is calculated differently but most are generated using complicated formulas that balances your "positive debt" — loans attained to pay for college or a house‚ for example‚ that you have made sure to stay on top of — "negative debt" — an overabundance of credit cards or delinquent loans — and your payment history‚ along with a number of other factors.
Each credit bureau generates its own credit score and other lenders and institutions do as well. There is no single credit score assigned to you because each score is calculated differently by the credit bureaus‚ lenders‚ and financial institutions.
While you are entitled to receive one free credit report from each credit bureau annually‚ you have to pay for this access for each subsequent look at this document and the free report does not include a score.
When you enlist in a credit monitoring service‚ whether through the bureau or an independent service like Identity Guard‚ your service will keep an eye on the report for you at all times and alert you to certain changes or activity that may be taking place in your name. This makes a credit monitoring service a good method to keep track of changes to your credit score.
Knowledge empowers you to make the best decisions‚ and a credit monitoring service helps ensure that you are continually in the know.