Personal Loan Lenders

Monitoring Your Credit Score Will Help You Getter Better Loan Rates

As an adult, your credit score may be the most important score you can achieve. This will determine how much you can borrow from lenders such as auto loan and mortgage companies, and it may dictate the interest you will have to pay. The difference between a high and a low score may ultimately be in the hundreds of thousands of dollars in the amount of interest you will have to pay.

A Careful Review of Your Annual Credit Report

In the US, there are three credit reporting agencies that generate credit scores of individuals. These are Equifax, Experian, and TransUnion, and you can request a credit report from them at no cost each year. For a small fee, you can also avail of more frequent reports so that you can better oversee your current credit score.

It’s a good idea to develop the habit of requesting for your credit report from these agencies every year. But that’s not enough; you have to actually go over them carefully so that you can monitor your score properly. You need to check each one, because each agency may come up with a different score. This may reflect the information they have managed to gather about your credit history, and if one is significantly lower than the others, then a check is in order. You may discover that that the information they have managed to uncover may be false, and you can send in your corrections. Remember, credit card companies and mortgage lenders can see you score, but they will not be as interested in verifying the accuracy of the score generated.

Checking For Fraud

A low score is often the result of irresponsible credit behavior, but sometimes it may also happen through no fault of your own. If you have always paid your debts on time, and you still have generated a low score, there may be fraud involved. Someone else may have run up staggering amounts of debt in your name, and this will have tarnished your credit score. This is certainly possible if your Social Security number, your credit card, or other bits of personal information have been compromised.

If you think this is possible, you should arrange for a fraud alert with your credit bureaus. With this kind of security, a department store or a loaner whom someone has approached to open an account in your name has to contact you personally before that account can be opened. This is to verify that the request indeed comes from you. The extra verification step may make it more difficult for an identity thief to wreck your credit score by running up debts in your name. You should receive a notification as well whenever there us a change to your bank account.

Think Long Term by Avoiding New Credit Card Accounts

Racking up new credit card accounts in a short period of time can damage your score. So you may have to rethink your plans to take advantage of certain discounts in stores as long as you open a new credit card account. The extra $10 you may save will absolutely not be worth what a low credit score can cost you.

Personal Loan Lenders