A bad credit can often result in an unfavorable rate of interest which could cost you a lot of money when you take a student loan, car loan or a mortgage. It could even prevent you from the leasing the apartment you have been eyeing for awhile. This could be a black mark on your record and stop you from getting your dream job. Therefore, it is essential to know your credit score and the actions which can make the score plummet or rise.
The best credit score monitoring service would create a summary of the history of your borrowings and payment. Information regarding any closed accounts, new accounts, late or unpaid bills and any other activity is also included in the report. In case you have a credit card, mortgage or a loan, it would show up in the report. The credit score that you have would determine your creditworthiness.
Listed below are a few factors that would determine your credit score.
- Amount Owed – The analysis of the credit balances and its comparison to the limits that you are allowed to withdraw. It can hurt your credit if you are maxed out.
- Payment History – This determines if you pay all your bills on time including your student loans, credit cards or utility bills. By paying all your bills on time you can increase your credit score.
- New Credit – The number of accounts that you have opened recently and the numbers of lenders that have inquired about your credit recently also determines your credit score. The more the activity, the more it means that you are about to head towards a debt binge.
- Years of Credit – It is the age of your accounts. The more detailed credit history you have, the better the lenders would gauge on your potential to pay back. However, the young borrowers cannot benefit here as they don’t have a detailed and established credit history.
How to Pick the Perfect Service and Give a Boost to Your Credit Score
The buying decision should be based on how extensive you would want the monitoring to be and the amount that you are willing to pay for it. The best credit score monitoring service would efficiently detect the fraud and create your overall credit score. The cost should be determined before signing up for the credit monitoring service. For having a better understanding, you can weigh this expense to against the odds of you suffering credit card fraud.
To keep your credit in good health you can limit the usage of your credit cards, space out as to when you apply for accounts and loans. You could also set up automatic payments which would ensure that the bills are paid on time, avoid carrying unpaid balances as well as avoid using the credit cards top its maximum limit. All these things should be done at all times and you would be just fine with your credit.
The best credit score monitoring service would efficiently monitor your credit activity and alert you of any abnormal changes so that you can rectify it as soon as possible.