For better budgeting, it is very important to keep your credit score high. Because when you keep your credit score high, you can benefit from many opportunities. For example; makes it easier to get credit, allows you to use a high-limit credit card, you can qualify for a 0% interest credit card. If you have a 0% interest credit card, you can transfer your high interest debts to a 0% interest credit card (credit card balance transfer) and save money by paying your debts with lower interest. Or, by using both credit card balance transfer and credit card debt consolidation loan, you can get rid of your debts at a low interest rate in one go.
What you need to know about your credit score
What you need to know about your credit score can be grouped under 4 main headings;
First thing you should know about your credit score; FICO scoring system. Credit scores that do not use the FICO point system can achieve high results and may mislead you.
The second thing you should know about your credit score; This is because there is no universal credit score. Even the credit scores of the three leading credit reference agencies differ. Because each credit reference agency’s credit scoring criteria and calculations are different. In addition, the results will vary, as each can access different information about you. Therefore, you should check your credit score based on data from 3 credit reference institutions.
The third thing you need to know about your credit score is; some companies provide analysis that shows the factors that have caused your credit score to increase or decrease. You can learn how to increase your credit score through these analyzes.
The last thing you need to know about your credit score is; is the cost you endure to learn your credit score. However, there are also free or low-cost ways to learn your credit score.
As a result, it will be useful to learn your credit score by paying attention to these issues.
How can you get your credit score or can you get your free credit score?
You can learn your credit score in many ways. With some of these options you can learn your free credit score. Methods for getting your credit score include;
- Credit Carma;
This service is completely free of charge and you can subscribe to the service by simply answering questions to verify your identity without credit card information. This gives you access to your free credit score. You can also view your credit accounts that have been open or closed for the past few years, and review the average age of your credit card and accounts. However, this account does not use the FICO scoring system. It calculates your credit score with the VartageScore scoring system based on data from TransUnion and Equifax.
- Credit Sesame;
Like Credit Carma, this service lets you learn your free credit score. Credit Carma and Credit Sesame offer similar privileges and both use the FICO scoring system. However, Credit Sesame uses the Experian National Risk Model score to calculate your credit score.
This service, which offers exactly the same features as the other two services and offers similar services, calculates your credit score with the VartageScore scoring system based on the data received from Equifax.
- Credit Card;
Some credit card issuers list their customer’s credit score on monthly credit card statements they send to their customers. Therefore, you should pay attention to your monthly credit card statements. This is because the credit points listed by credit card issuers through your credit card statements are your credit points calculated according to the FICO scoring system. In summary, this is one way to find out your free credit score.
- Credit reporting agencies (Equifax, Experian, TransUnion)
These credit reporting agencies allow the use of a trial version for a certain period of time, and during this period will provide you with both your credit reports and your credit score free of charge. However, once this time is up, you can continue to receive these services by paying a monthly subscription fee. The monthly subscription fee and the credit score they calculate are different for each credit reporting organization. Therefore, you should learn your credit score from one of these credit reporting organizations according to the type of credit you want to take.
Learning your credit reports is as important as learning your free credit score. Because you should review and improve your credit score in line with your credit reports. It is your legal right to access your credit reports free of charge through credit reporting agencies. However, a subscription is required for extra information and services. Finally, your credit reports typically don’t include your credit score.