You should regularly review your credit reports and scores so that you know what to expect when shopping for the best deals on new loans and lines of credit. Good credit scores can save you money by helping you qualify for low-interest mortgages, car loans, and credit cards. Lenders are more likely to offer lower interest rates to those with high credit scores, because they signify a history of good credit behavior. Low interest rates mean you pay less in interest each month on your credit cards, cars, home, and personal loans. These savings can mean you pay hundreds or even thousands of dollars less to your creditors each year.
Having good credit saves you money even if you aren’t applying for a new loan. It can help you get that great deal on an apartment, and lower car insurance and life insurance premiums. It can also keep you in the good graces of your existing creditors, making it less likely that they’ll ratchet up your current interest rate.
The key to determining your eligibility for credit is assessing how you’ve handled past credit obligations. Your credit reports provide potential lenders, service providers, employers, and other authorized parties with information about your credit history. A deep understanding of your credit reports can help you to use credit responsibly and identify errors that may impact your creditworthiness. Since creditors report your credit activity to the reporting agencies frequently (generally monthly), it is important to review your credit reports and scores often. Keep in mind that there are lots of free credit report tools out there, but none of them offers the ability to track, update, and forecast your credit scores.
With ScoreSense Monitoring, you will be alerted to changes in your credit report. To view your changes, you may purchase your report and scores for a one-time fee or upgrade your account to ScoreSense Plus for unlimited access to your credit report and scores.