| A bad credit score can lead to high interest rates on | | | | What Factors Are Used to Calculate a Score? |
| mortgages or loans and even prevent you from | | | | There are a multitude of figures used in the calculation |
| borrowing money all together. In fact, an unfavorable | | | | of a credit rating. Below you will find just some of |
| credit report may even thwart your career plans. | | | | them: |
| Therefore, it is advisable to gain a little knowledge | | | | Payment History - Assesses how promptly you make |
| about your score, how it is calculated, how you can | | | | repayments on loans or pay bills, such as credit card |
| alter it and how credit score monitoring works in your | | | | or utilities. To ensure that your payment history does |
| favor. | | | | not have a negative effect on your credit score |
| The Basics of Credit Score Monitoring | | | | always pay bills by the due date. |
| Essentially, monitoring is a way of assessing an | | | | Years of Credit - Unfortunately for young adults, the |
| individual's credit rating. A monitoring company can | | | | longer you have held accounts the higher your credit |
| research your credit history to examine dubious | | | | score is likely to be, simply because lenders have |
| transactions or alterations to your credit circumstances. | | | | more information to go on. |
| Obviously, monitoring is useful when looking to take out | | | | Requests for New Credit - Lenders also have access |
| a loan or buy a new house. However, subscribers to | | | | to information about the number of other companies |
| credit monitoring services also find peace of mind in | | | | that have sought credit information regarding you. |
| the knowledge that any suspicious financial activity will | | | | Therefore, if you have recently made a number of |
| be noted, thereby reducing the possibility of credit card | | | | requests for loans, this does not bode well. |
| and identity theft. | | | | Types of Credit - In other words, the different sources |
| There are two types of credit score monitoring: the 1 | | | | from which you obtain credit, such as mortgage, credit |
| bureau service and 3 bureau service. 1 bureau | | | | cards, auto loans etc. If you are paying all of these |
| monitoring provides information from just one of the | | | | promptly, this has a positive effect on your score. |
| three credit reporting bureaus: Experian, Equifax and | | | | It is worth bearing in mind that although your credit |
| TransUnion. The 3 bureau service, on the other hand, | | | | rating is important, it is not the only factor considered |
| provides information from all three. | | | | by lenders. Your employment status, income and other |
| Your score is rated from between 300 and 850. Each | | | | information is also assessed. |
| credit reporting bureau has a slightly different way of | | | | It is also wise to bear in mind that credit score |
| calculating the score, so it may differ depending on | | | | monitoring should not be thought of as an anti-identity |
| which service you choose. Basically, this number is | | | | theft measure, but, of course, it will alert you to |
| used by lenders to assess your reliability and capability | | | | unauthorized use of your accounts. |
| to pay back a loan. | | | | |