Many individuals have credit report questions, and with so many people in debt these days, it’s important to learn as much as possible about the benefits of good credit and how to maintain an excellent credit score. For those individuals wondering ‘what’s my credit score,’ there are a number of resources available that assist with tracking and monitoring credit reports. Learn to answer credit report questions and inform individuals of how to maintain great credit.
What is a Credit Score?
A credit score is formulated by the three major credit bureaus, based on an individual’s credit history. As individuals stay on top of their monthly payments and pay on time, lenders report to the credit bureaus, and the credit score increases. However, when individuals pay late or don’t pay at all, it is reported also, and makes the credit score decrease. Other things affect the credit score as well, such as how many different types of debt an individual has and what the balances on those debts are in comparison to what they are paying each month.
The Three Major Credit Bureaus
There are three major credit bureaus, which formulate credit scores for individuals. Before lenders extend credit to an individual, they will check with these bureaus to determine whether or not the individual is a ‘safe’ risk or not. Depending upon the score of the credit, the lender will decide whether or not to extend that credit. The credit bureaus are TransUnion, Equifax and Experian. For the addresses and other contact information regarding the three major credit bureaus, visit Fight Identity Theft.
How to Monitor a Credit Score
Individuals with credit report questions can monitor their credit report, staying on top of the score and the entries. While it doesn’t happen often, credit bureaus can make mistakes, placing entries on an individual’s credit report that do not belong to them. Also, monitoring credit scores can help individuals spot identity theft right away and take actions to stop it before much damage has occurred.
Each individual is entitled to a free yearly credit report, which can allow him or her to monitor the score. The only website which officially offers free credit reports is AnnualCreditReport. By creating an account, individuals can receive their free report and if they wish, can decide to monitor the report more frequently, which may cost a small fee.
Free Credit Report after Being Turned Down for Credit
Individuals who have been turned down for credit may find themselves wondering, ‘what’s my credit score?’ In most cases when an individual has been turned down for credit, they will receive a letter which explains why. On the back of the letter, individuals will find instructions on how to receive a free credit report. This will answer credit report questions and help the individual understand why they’ve been turned down for credit.
By using the information above, individuals will understand their credit report better and learn how to monitor it and keep the score above average.