Ignoring Your Credit Scores is Not the Move
When’s the last time you checked your credit scores…
If you just slammed your computer down or yelled obscenities, I get it.
Credit scores give most people the ick feeling. (Side note: The credit scoring and reporting system is also hugely unjust and inequitable but I digress…)
Until we replace the credit scoring system with something more equitable, we gotta work with it.
Your credit scores and reports are used to qualify you for loans (and determine your interest rate), screen you for renting a property or obtaining insurance, and are often used as part of the job application process. Basically, they affect a whole heck of a lot of things that affect your financial security and future.
So if you’ve been ignoring your credit scores, here’s where I want you to start:
➡️ Head to AnnualCreditReport.com to request a free copy of your credit. You can do this annually and I recommend putting a reminder on your calendar so you don’t forget.
➡️ Consider signing up for MyFico.com. Their monthly plans start at $19.95 and provide you with ongoing credit monitoring. They have helped me, several times, catch identity fraud before it gets too far, and I like getting alerts about any changes to my credit.
➡️ Learn about how your credit scores are calculated and what’s on your reports. MyFico.com offers a lot of free educational resources (I suggest starting with “What is a FICO Score”.)
➡️ Correct any erroneous items on your report. This could be accounts that incorrectly reported late payments, or accounts that you never opened. Every item affects your credit score so scan it carefully to make sure everything’s accurate!
To stay on top of my credit, I read every alert that MyFico.com sends me and act on it, if necessary. I then pull my credit reports every quarter to do a full scan of what’s on there and take corrective action if needed. These simple steps have warded off a lot of issues and saved me a lot of money on interest over the years!
If you’re worried about identity fraud, or just want to be proactive, you can freeze your credit so that no one can use it. This means that a scammer won’t be able to open up any accounts in your name.
In order to freeze your credit, you need to call each credit bureau:
➡️ Experian: Call 800-349-9960 or visit their website
➡️ Equifax: Call 888-397-3742 or visit their website
➡️ TransUnion: Call 888-909-8872 or visit their website
Nerdwallet has put together free guides to walk you through the steps to freeze your credit with each bureau:
Just keep in mind that when you freeze your credit, that also means you won’t be able to use it to open any new accounts. So you’ll need to unfreeze it before you apply!
Tip For Parents: Freeze your child’s credit! Parents can freeze the credit of their child if they’re under 16, and since I don’t know many toddlers out there buying houses or getting credit cards, this is a good idea (child identity theft is a huge problem).