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How Can I Check my Credit Score?

By August 30, 2022October 18th, 2022No Comments

There are a number of ways in which you can follow to check your credit score including obtaining your loan statement, credit card bill, speaking to a non-profit counsellor or by paying a small fee to the credit bureau.

 

What is a Credit Score?

Credit scores are based on your credit history and evaluate how well you had paid off forms of credit in the past, such as rent, mobile phone bills, loans and credit card repayments.

Banks, credit unions and loan lenders will look at your credit score to evaluate whether they will approve you for a loan, and if so, on what repayment and interest terms.

A higher credit score means that you are more likely to be approved for loans, as you have a strong and consistent history of paying in full and on time. This may also open up the opportunities for better deals and interest terms on loans.

A low credit score may impact your ability to be approved for a loan, and also the terms that you may need to follow, such as higher interest rates on monthly repayments.

As such, it is important to keep track of your credit score, especially before you are wanting to apply for a loan and you are unsure whether you will be approved.

 

How Can I Check My Credit Score?

 

There are four main ways that you can check your credit score. These include the following:

 

  • Through Your Recent Credit Card or Loan Statement

Several credit card providers will show your credit score on your monthly statement. The credit score is usually visible when you are shown your account balance at the end of each month.

You may also be able to view your credit score through your credit card provider’s online portal. This can take just a few minutes to find.

 

  • By Talking to a Non-Profit Financial Advisor

Non-profit credit counselors and financial advisors in the US are typically able to provide you with a free credit score. They may also help you by talking through the numbers and what these mean for your personal finances and options.

 

How Can I Check my Credit Score?

 

  • Using a Soft Internet Check Tool

There are a number of online sites that will offer you a service to check your credit score for free. This is a soft credit check so it will not appear on your credit history when you have used their service to check your credit score.

It is worth checking their terms and conditions before pursuing the search on a particular site as they might have subscription or additional fees.

 

  • Paying a Fee to the Credit Bureau

You may also wish to buy your credit score directly from a credit reporting bureau in the US.

 

How is my Credit Score Calculated?

 

There are a number of factors that are evaluated when your credit score is put together. These include your payment history – including fixed or routine payments such as rent or mobile phone payments, credit utilisation, how long you have been using credit, the number of recent credit applications you have made, and what type of credit you have previously sought.

Credit scores do not account for how much you earn each month, your amount of savings or factors such as job security. A bank, credit union or loan lender may ask you to provide these details separately alongside evaluating your credit score during the loan application process.

 

What is a Good Credit Score?

 

Typical credit scores will range between 300 to 850 in the US. Any score that exceeds 800 is excellent. While each lender may have their own criteria for what they deem to be a good credit score, it typically follows the following standards:

  • Excellent Credit Score – Exceeding 720
  • Good Credit Score – Between 690 to 719
  • Fair Credit Score – Between 630 to 689
  • Poor Credit Score – Below 629

 

How Can I Increase my Credit Score?

 

The two most significant factors that determine your credit score include paying bills on time and in full, as well as managing your credit utilisation rate properly.

As well as the above, you can increase your credit score by making sure to pay all routine or monthl;y payments on time, use no more than 30% of the credit that is available to you, make sure your open accounts are as active as possible, avoid applying for too many new accounts or loans at the same time or in a short period of time as well as thoroughly checking through your credit report for any errors. These errors may be impacting your credit score negatively. You should ensure that you provide the relevant credit report bureau with the correct evidence to prove that errors have been made.

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