credit score

Checking your credit report is free. And it is incredibly important to do. But a new survey from CompareCards.com says that just one in three adults checked their credit report last year.

I can’t tell you how concerned this makes me. I know many of you are able to get a free FICO credit score every month from your bank. That’s great. But everyone should also check their credit reports as well.

It’s been a while since we’ve reviewed credit scores and credit reports. Let’s take a quick spin: FICO is the most widely used credit scoring system. You actually have 3 basic FICO scores: one from each of the main credit bureaus: Equifax, Experian and TransUnion. Those scores determine if you can borrow money, and what interest rate you will be offered.  It also comes into play when you apply for a new credit card.

FICO scores range from 300-850. A score of at least 740 is very good. If your score is below 700 you may find it hard—especially during this recession—to qualify for deals or get a good interest rate.

Think of your credit report as the building material for your FICO score. You need to make sure that all your material is in good shape by making sure there are no mistakes, and looking out for signs of identity theft.

An annual check of your credit report is vitally important to catch identity thieves. You want to make sure there are no new accounts (loans, credit cards etc.) showing up on your credit report that you didn’t authorize. That’s a sign that a thief has posed as you and taken out a loan or credit card in your name.

You can check all three credit reports for free by going to www.annualcreditreport.com. You never have to pay to get your credit report, nor do you need to share credit card info. Instead of getting all three credit reports at once, conside

If you ever spot a problem, follow the directions that will be included in your report. Once you file a dispute or report a problem to one credit bureau, they will share with the other bureaus.

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