Credit Score Improving Your Score

Not Knowing the Score May Be Killing Your Credit

When it comes to proper credit management it is just as important for consumers to understand what they need to avoid as it is for them to understand the steps which they do need to take in order to achieve and maintain strong credit reports and scores. Ignorance of these so-called credit killers is dangerous.

In fact, most consumers are very surprised to learn just how quickly a mistake can negatively impact their credit scores. Even more unsettling is the fact that when a consumer does experience damaged credit scores at the hands of a credit killer, it can often take years to fully recover from the damage.

Ignorance Is Not Bliss

One of the most common credit killers that hurt consumers is the failure to properly monitor their credit reports. To avoid this credit killer, which is actually very easy, it is important for consumers to make a habit of checking their credit reports and scores routinely.

Although consumers do have the right to expect accurate credit reports, mistakes can and do still occur. In fact, a study released by the Federal Trade Commission in 2013 found that 1 in 5 Americans has a mistake on at least 1 of their 3 credit reports.

Ultimately it is up to the consumer to monitor his reports in order to ensure that they do, in fact, remain accurate. No one else will monitor a consumer’s credit reports for him. And, the credit bureaus aren’t going to provide you with copies of your reports or assistance getting them corrected unless you ask them to do so.

Free Annual Reports

Since 2003, thanks to Federal law, consumers have had a right to pull all three of their credit reports completely free of charge each year via AnnualCreditReport.com. Additionally, some states give their residents the right to view their credit reports even more often as well.

For example, residents of Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont are entitled to additional free credit reports from each of the three major credit-reporting agencies.

While these free credit reports do not include credit scores, they are still an means of helping consumers get a feel for the quality of their credit reports. Shockingly, even though consumers have had the right to access their credit reports annually for over a decade, only a mere 4% of the available reports are claimed on a yearly basis.

The extremely low percentage is a clear indication that the majority of U.S. consumers do not keep a close enough eye on their credit reports.

Free Credit Scores

When a consumer is ignorant of the items on his credit reports he puts himself and his credit scores in a very vulnerable position. Routinely checking credit reports is the best way for a consumer to avoid surprises. In addition to monitoring credit reports it can also be helpful for a consumer to closely monitor his credit scores as well.

However, there is unfortunately no federal mandate for a consumer to be provided with a free copy of his credit scores. That’s the bad news.
The good news is the free market has taken care of free credit scores, and then some. There are at least two dozen ways consumers can get free credit scores. They are effectively accomplished through two channels.

1. Truly Free Credit Score Websites

There is a growing number of websites that offer consumers free credit reports and scores in exchange for the ability to market financial related products to those “users.” Consumers can currently access a free credit report (or credit report summary) and credit score from CreditSesame.com, Quizzle.com, CreditKarma.com, and Credit.com. There is no credit card required.

2. Credit Card Issuers and Lenders

There are many lenders that are now giving away either FICO or VantageScore credit scores. The only requirement is that you be a customer. This list seems to be growing on a monthly basis but as of now you can get a free score from these companies; Chase, Bank of America, Ally Bank, Citibank, Discover, Barclays, First National Bank of Omaha, Digital Credit Union, Pentagon Federal Credit Union, State Employees Credit Union, Capital One, Springleaf Financial, LendingTree and USAA.

About the author

John Ulzheimer

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