How to Do a Credit Checkup

No matter the state of your credit history – good or bad – it’s important that you conduct a checkup periodically. A checkup not only helps you see how your standing is, but also helps you catch cases of identity theft and fraud before they get worse. When you apply for certain products and services, lenders and other businesses will check your credit report. So, it’s a good idea to know what’s on your report before it really matters.

Your credit history is made of two parts – your report and your score. Both of these are essential pieces of your  checkup.

Credit Report Checkup

By law, everyone has the right to a free credit report from each of the three credit bureaus – Equifax, Experian, and TransUnion – and AnnualCreditReport.com is the website to check them. You can order all three bureau reports at once, or you can order one every few months. Your reports are different from each other, so keep that in mind as you decide whether to get all three free reports at one time or stagger them.

Credit reports can also be purchased from the bureaus through their respective websites. You can even purchase a three-in-one credit report that compares your credit reports side-by-side. There are also third-party sources that sell single and three bureau credit reports.

Each time you check your credit report, you should review it to make sure there are no inaccuracies. Also check for accounts that aren’t yours, which would help you recognize identity theft.

If you’re going through credit repair, whether through a company or DIY, check your credit report for the results of any disputes, goodwill letters, debt settlements, or pay for delete letters you’ve sent.

Credit Score Checkup

The second part of a credit checkup involves checking your credit score, the number that tells you how good or bad your credit is. If there is negative information on your credit report, your credit score will give you an indication of just how bad the information is.

You won’t get a free credit score along with your annual free credit reports. Instead, you’ll have to look elsewhere for a recent calculation of your credit score. MyFICO.com sells FICO scores based on both your Equifax and TransUnion data. Each of the credit bureaus sells their own credit scores; Experian sells the VantageScore, which is calculated differently from the FICO score. Free credit scores (not government mandated) are available through Quizzle.com and CreditKarma.com.

When you get a credit score, it’s important that you know which credit report that score is based on. Your Equifax credit score is based on data in your Equifax credit report, for example. Since all three of your credit reports are different, your credit scores will also be different. Lenders may use an average of all three credit scores when they’re making a decision about you, so if you have to focus on improving one credit score at a time, start with the lowest one.

Check your credit several times throughout the year if you’re actively repairing your credit. Otherwise, it’s safe to check your credit once or twice each year.

Similar Posts:

• How to Pick a Credit Monitoring Service
• Beyond Credit Repair: Why Check Your Credit Report?
• How Can You Get a Free Credit Score
• Where to Find Free and Cheap Credit Reports and Scores
• How to Repair Your Credit After Identity Theft