How to check your credit score for free
Effective financial management is crucial for individuals, and a key aspect of this is understanding and monitoring your credit score. As your financial situation evolves, so does your credit score. Regularly keeping track of your credit score provides an opportunity for adjustments before crucial financial decisions, such as applying for a loan, mortgage, or credit card. Paying to check your score each time you want to analyze it can significantly impact your funds. Are you aware of how to check your credit score for free?
Is keeping track of the credit score important?
A long time ago people were sure that their credit scores were much better when they had never borrowed money from any institution. Now, they are aware that existing in the credit reports is beneficial for them, and that banks and other lenders need to check their credit score, or credit rating, to accept their loan or credit card application.
The higher the credit score is, the lower the risk of lending money to the person, which often lowers rates of interest. Even if you are not planning to take a mortgage at the moment, it’s recommended to keep an eye on the credit score to analyse the changing rating, and to be able to modify it and influence it a bit.
How can you control your credit score easily?
The responsibility for collecting the credit scores of all individuals applying for a mortgage lies in the hands of three credit agencies: Equifax, Experian, and TransUnion. The first step that a lender will take before accepting your application for a loan is to access the information from the agencies that assess your creditworthiness.
It’s advisable to check the credit ratings with all three agencies regularly to track possible errors that could threaten a positive credit decision. You should check a few things, such as addresses on your financial accounts, the credit limits and credit usage so far, expired accounts, rejected loan applications, missed payment records, and any CCJs against you.
The issue that you may face is the fact that a credit report from the credit agencies does not include your credit score, which you can get from special credit services offering you the data for free, such as Credit Karma in the UK.
What does a credit rating check look like?
When you decide to check your credit rating with Credit Karma, you will receive information about your past financial decisions, and your current financial accounts, such as credit arrangements. This service updates the data weekly, which gives you certainty of the most current rating. You can also be interested in receiving regular updates in case of changes, to have direct access to your financial management. The best part of the game is the fact you can do it for free!
How is it possible? Credit Karma is a credit broker, which allows them to make money on other services, and the commissions on sales of financial products. As you can already see checking credit scoring will not ruin your budget, do it regularly to prevent the situation of refusal. When it occurs, it hurts the credit score and may alarm lenders to trust you.
Is checking credit ratings free?
Understandably, you are a bit doubtful when you hear that checking credit ratings can be done for free. Your worries are partly justified because, even using Credit Karma, there is a price to pay. Yet, the price doesn’t concern any money, but rather your time and space on your email.
You will not be asked for your debit or credit card details, but for your consent for your data to be used for targeted advertising. The advertising you can expect doesn’t confine itself to financial products; it can also focus on your bill-switching offers and more. The service will do its best to encourage, for example, Americans in the UK to take action, not only to see the advertisement but also to choose a new energy supplier offer, which will equal a commission for the business.
None of your personal information is shared with third parties, only the data you agree to share are sent to the advertisers.
The steps to check your credit rating
Still focusing on checking your credit rating for free, first register with Credit Karma, log into your account, and check the credit rating in your dashboard. Apart from simply checking the credit score, you can improve it, and you can learn the process when you click the Build button. Among the functions, you will be able to increase your credit score, reduce your credit usage, or update your credit health. There is also a separate section called ‘Things you’re doing well’, to keep going with the mentioned activities. The exploration and work in these two sections can greatly increase your credit score.
The stimulator can also show you how to modify your credit score by taking different actions, such as opening a credit card account, or even side hustles increasing your monthly income.
