Consumers need to understand what their credit score is and how it’s used. The credit score is the single most important factor used when determining a new credit card loan, car loan, mortgage or bank account. The higher your credit score the better. When you have a low credit score you’ll find it difficult to get loans and when you do you’ll find that they are at a high interest rate because you are considered a high risk.
FreeCreditReport.com uses a catchy slogan called I’m Thinking of a Number. Their advertisements help to bring attention to the growing concern for identity theft and the need to know what your credit score is. You can’t simply guess on what your credit score is – you must always be aware of it.
Your credit score changes from month to month. Your credit score is determined using a number of factors. Your credit card companies, loan companies and utility companies send payment and credit information to the three main credit reporting bureaus on a monthly basis. The information is used to determine your credit score.
If the information that is supplied is incorrect your credit score will be wrong. Identity theft can create problems with your credit score. Identity thieves can use your personal information to obtain credit cards or loans in your name and then steal the money. The result creates huge financial problems for you that can take years to resolve.
If you find the problems quickly, however, you can take immediate action to stop the problem before it harms your credit score. One of the best ways to prevent harm is by taking a monthly subscription to a credit monitoring service. This will give you access to your credit report and will alert you when changes are made that concern your credit score.
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