When you become an adult, one of the most important parts of your identity is the credit score. These scores will determine if you can fund a personal loan, buy a car or invest in a home. Ideally, you want to have a perfect credit score based on on-time payments and ample credit amounts. Some consumers are even looking for ways to keep track of their scores on a regular basis. If you want to see how your score fluctuates over time, take a look at a few strategies that you can employ.
Be Aware of Rapid Fluctuations
Before you track your credit score on a regular basis, it’s important to understand that it will change significantly over time. You may not be investing in any major assets or funding a loan, but you’ll notice big changes to the number. For example, you miss a payment on your credit card. You diligently pay the balance in full next month, but the credit damage has been done. It’s possible for your credit score to dip a full 50 points because of a missed payment.
Consider Several Scores
You might be surprised to discover that you have several credit scores. To track your score with accuracy, you should only pick one score. There are three main credit agencies, and each one has a different score for your personal spending habits. The difference is mainly the agency’s scoring algorithms. Your credit history should be the same at each agency, and it’s only the score that differs. Tracking all three of the scores may be too much to handle for one person.
The “Once-a-Year” Strategy
The simplest way to track your credit score is through your free credit report each year. You can request for the score to be included with the free history. The agency will normally charge you for this information, but it’s worth the investment when you’re trying to create an accurate credit portrait of yourself. Read through the free credit history and highlight the score. When you have several years of reports to compare, you’ll see the score’s pattern emerging.
Enroll in a Program
There are several online companies that specialize in credit checks. You can sign up for one of these programs, and they allow you to access your credit score at almost any time. If you want to see the score once a month, it’s possible to do so by paying a monthly fee. However, dozens of companies will vie for your attention. Read over reviews before selecting a company. You want a reputable website for credit-score analysis.
Track it Through Your Credit Card
If you have a credit card, contact them and ask about credit-score tracking. Because there are so many cards in the marketplace today, some creditors are trying to distinguish themselves from the competition. They’ll offer a credit-tracker app within your login session. While you pay your credit card, you can check your score at the same time. The credit agencies don’t penalize you for accessing your information on a regular basis so these tracker apps are useful tools.
Try the Backdoor Method
Tracking your credit score isn’t as important as keeping tabs on your detailed history. In fact, it’s the credit history that determines your score. Ask for your history from the agencies at least once a year. Read carefully through the history, and contact creditors if there are any mistakes. If your history is perfect and accurate, that fact will be reflected in the score.
Keep a Written Record
Start a spreadsheet for your credit-score tracking project. Note the date and time that you access each score value. You can even create line graphs to see the score changes over time. With some experience, you’ll notice which actions affect your score the most. As a result, you can avoid those actions as much as possible for a higher score each time.
Don’t be discouraged if your credit score is low at this point. If you diligently pay your bills on time and maintain a reasonable credit card balance, that score will increase in only a few months. Continue to track your credit score, and you’ll learn all about the different items that affect it each month.
