Credit Monitoring

What is a Credit Score?

A credit score is a complex mathematical model that evaluates many types of information in a credit file. A credit score is used by a lender to help determine whether a person qualifies for a particular credit card, loan, or service. Most credit scores estimate the risk a company incurs by lending a person money or providing them with a service –specifically, the likelihood that the person will make payments on time in the next two to three years. Generally, the higher the score, the less risk the person represents.

Why do I need to monitor my credit?

There are several good reasons to monitor your credit reports and score.

• It can help you to reduce losses of you are a victim of identity theft.

  If you notice some inquiries or open accounts that you do not know anything about, it could be a sign that someone else is using your identity to receive goods and services. Chances are that they are not planning to pay the bills, so be sure to contact the companies and find out how to stop the service immediately.

• It is a good way to make sure that your credit history is reported accurately. If it is not accurate, you can go back to the responsible companies and ask them to fix it for you.

• It is good to have an idea of where you stand before applying for loans or credit cards. If you are thinking about buying a house, you might decide to take 6 months to get your score up before applying for a loan. Taking time and improving your credit score could help you to get a better interest rate, which saves you money!

How do I monitor my credit reports and score?

You are entitled to a free credit report from each of the three major credit reporting bureaus each year. Please follow the link below to request your free credit report. www.annualcreditreport.com

Your credit score will not be included in your free credit report. If you would like to see your credit score as well, you can request it with your credit report, but there is a fee for this service.

Where can I find out about repairing my credit score?

The Federal Trade Commission (FTC) has information on who to contact about credit score reporting.