If you are here, then we assume that you are in search of the methods to check your credit score. However, before checking the credit score, it is important to know what exactly a credit score is.
Basically, a credit score is a score that is required to understand how likely the lender will be able to get their credit card debt or money if they give a loan to a person. This is called their creditworthiness.
It is observed that when the creditworthiness of the consumer is high, they are much trustworthy in terms of finance. A credit score ranges somewhere in between 300-850.
How to Check Your Credit Scores?
As you have a basic knowledge of credit scores now, let’s take s deep into different ways in which you should be able to check your credit score. Here we have discussed each one in detail.
Credit Card, Financial Institution, Loan Statement
The easiest way to know about your credit scores is just by checking the credit scores on the credit cards. This is because recently the credit card companies have started including credit scores on the statement itself. You can also know it by simply logging into your account and checking for the details.
Other Sources From Which You Can Know Your Credit Score
In addition to what mentioned above, you can take help from other sources to check your credit scores. Here we have mentioned some of the sources for both Fico scores and Vantage scores.
Discover Credit Scorecard
With Discover Credit Scorecard, you will be able to know about your Fico score easily. These Fico scores depend on the type of loan you take. What makes it more promising is its score update every 30 days. The score will also get updated whenever you log in. You can use their services even if you are not connected to Discover Bank.
Chase Credit Journey
Unlike Discover, Chase Credit Journey is used to know the VantageScore based on TransUnion credit reports. The tool is entirely free and provides everyday information on your score detail. Not only does it let you check your credit score but also credit in general. You can also use this tool for checking any credit fraudulence. Besides, the scorecard updates on a weekly basis.
Experian Free Credit Score
Experian free credit score is associated with your Experian credit report. It is considered as a credit bureau through which you will be able to monitor your credit score without any cost. Not only does it present you a Fico score that is updated every one month but you can further manage and monitor your credit report.
Capital One CreditWise
Capital One CreditWise will help you know your TransUnion Vantage 3.0 Score. In addition to that, you will also be able to follow up on the credit reports and monitor for any fraudulence. This tool is pretty accurate but not that much when it comes to FICO scores.
If you are running a business and need credit monitoring then NAV is the one for you. This is because it is useful for checking your business or personal credit score. With NAV, you can know the credit scores for Experian and Dun, Bradstreet. Besides, you will also be able to check your VantageScore as per the Experian and TransUnion credit reports.
As the name suggests, the tool is created by the creators of the Fico score. It will help you to know the one-time credit score from a particular bureau. Besides, it can also help you to monitor your credit score and its updates. The score which you get from this tool is accurate and real.
What is Credit History?
As mentioned earlier, credit history will provide you the complete history which includes the details of the amount you have borrowed at present or in the past.
Apart from that, it holds the information including the instances where any lender asked you to show the credit report.
Credit history will also involve the scenarios where your accounts had been passed to a collection agency. Other than that, it also holds the record of any bankruptcies and foreclosures that you have been to.
The entire concept of credit score is based on credit history. If in future you decide to take money from a lender then you will be asked to show your credit report. It presents a fair idea whether you are trustworthy enough for lending money or not.
What Does a Credit Score Involve?
A credit score is made up of five components viz., 50% of payment history, 30% of amounts owed, 15% of credit history length, 10% of credit types that are currently used and 10% account inquiries.
Does Your Credit Score affect Your Credit Cards?
The simple answer to the question is Yes. As your credit score will go up, your qualification for credit cards will increase as well. With a better credit score, you will be qualified to own credit cards that are top-notch. However, if you are looking for ways to improve your poor credit, then make sure to opt for cards that are secured.
How to Improve Your Credit?
If you are one of them who have a lesser credit score then maybe it’s high time that you improve it now. There are numerous ways in which you should be able to improve your credit. Here we have listed some of them.
Retain a low balance
The first and foremost thing you should do to improve your credit score is to stop maxing them out and keep the credit balance below 30% of the limit. The lower you will keep the credit balance the better it will be.
Get Rid of Any Errors
Many times you may encounter low credit scores due to certain errors. It can be an error if you are facing a scenario where you pay your bills on time but it shows that you haven’t. These errors need to be fixed by the law so that you can get the proper credit score.
Stop Applying for New Credit Cards
If you keep applying for new credit cards every now and then, then it may influence your credit report. As a result, the lenders will think that you are more into taking money. To get rid of such situations, simply stop applying for new credit cards.
Your credit score may stay low because of a lesser interest in taking money from the lender. If such is the case, then try to build your credit score by borrowing money so that it can implant a positive effect on credit history. This will definitely be an effective way to enhance your credit score.