6 ways to check your credit score

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Your credit score is a crucial piece of your financial puzzle, influencing everything from your ability to secure a loan to the interest rates you'll pay. However, many people are unsure how to check their credit score or why it's important. 

We’ll dive into the world of credit scores, explaining how they work, why you should check them regularly, and how to access your score. 

How to check your credit score 

There are several ways to check your credit score, from free options to paid credit monitoring services. Let's explore some of the most common methods:

1. Use a free credit scoring service 

Many websites, apps, and financial institutions now offer free credit scores to consumers. Some popular options include Credit Karma and Credit Sesame. 

Most of these services provide access to your VantageScore 3.0, a credit scoring model developed by the three major credit bureaus (Equifax, Experian, and TransUnion). While VantageScore is not as widely used as the FICO score, it can still give you a good general sense of your credit health.

2. Request your score from the credit bureaus 

While you can get a free credit report from the three credit bureaus, getting a free credit score is harder. Experian is currently the only credit bureau that provides a free credit score. TransUnion and Equifax make you pay for their official credit score.

When you apply for a loan or credit card, you’ll receive a copy of the credit score used to make that application decision. 

3. Check with your bank 

Many banks and credit card companies now offer free credit scores to their customers as a perk. These scores may be FICO scores or VantageScores, depending on the institution. To see if your bank or issuer offers free scores, log into your online account or call customer service.

4. Check with your card issuer 

Many credit card issuers now offer free credit scores to their cardholders as a perk. These scores are typically updated monthly and can be accessed through your online account dashboard. 

Issuers that offer free credit scores include American Express, Bank of America, Chase, Citi, and Wells Fargo. 

Keep in mind that the type of score provided may vary by issuer. Some offer FICO scores, while others provide VantageScore or their proprietary scoring models.

5. Use a credit monitoring service

If you truly want to see the same credit score that a lender may look at, you may want to consider a paid credit monitoring service. These services typically offer access to your FICO score, the scoring model most commonly used by lenders. 

They also often provide additional features, such as daily credit monitoring, identity theft protection, credit score simulators, and detailed credit reports from all three bureaus. 

Many paid credit services also provide monitoring so you'll be notified when something changes on your credit report. This can alert you to potential fraud or mistakes as soon as they happen. Popular paid credit monitoring services include MyFICO, IdentityForce, PrivacyGuard, and TransUnion Credit Monitoring. 

While these services can be helpful, they do come at a cost. Prices typically range from $15 to $40 per month, depending on the level of service and features provided.

“What you’re paying for when you pay for a premium service, it’s not a number,” says Griffin. “It’s the other tools and resources that come with it.”

6. Work with a credit counselor 

If you're struggling with your credit or need more personalized guidance, you may want to consider working with a non-profit credit counseling agency. These organizations offer various services, including debt management plans, budgeting assistance, and credit education.

Many credit counseling agencies can provide you with a free credit report and score review as part of their services. They can help you understand the factors impacting your score and develop a plan to address any negative items.

To find a reputable credit counseling agency, look for one accredited by the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA).

How credit scores work 

A credit score is a three-digit number representing your creditworthiness based on your past and current borrowing history. This information is gathered from your credit reports, maintained by the three major credit bureaus: Equifax, Experian, and TransUnion.

Your credit score is calculated using the following factors:

1. Payment history (35%): This reflects whether you've consistently paid your bills on time. If you make a late payment, your credit score will drop. The later your payment, the more of a hit you’ll take.
2. Credit utilization (30%): This is the amount of credit you use compared to your credit limits, primarily on revolving accounts like credit cards.
3. Length of credit history (15%): The longer you've had credit accounts open, the better it is for your score.
4. Credit mix (10%): A diverse mix of credit types (ex., credit cards, installment loans, mortgages) can positively impact your score.
5. New credit inquiries (10%): Each time you apply for credit, a hard inquiry is made on your report, which can slightly lower your score.

Credit score ranges and what they mean

Credit scores typically range from 300 to 850, with higher scores indicating better creditworthiness. Here's a breakdown of the different score ranges:

• Excellent: 800-850
• Very good: 740-799
• Good: 670-739
• Fair: 580-669
• Poor: 300-579

A good or excellent credit score can help you qualify for the best loan terms, lower interest rates, and premium credit card offers. Some employers, landlords, and insurance companies may also use credit scores to evaluate applicants, so maintaining a strong score can have far-reaching benefits.

It's important to note that you don't have just one credit score — you may have several, and they can vary between bureaus. This is because not all lenders report to all three bureaus, and each bureau may use slightly different scoring models.

“One number from a specific model will mean the same thing in terms of risk compared to a score from a different model,” says Rod Griffin, senior director of Consumer Education and Advocacy at Experian. 

Why check your credit score? 

You should check your credit score — and regularly — for a few key reasons. 

Preparing for a major purchase or loan 

One of the most important reasons to check your credit score is when you plan to apply for a loan, credit card, or other form of financing. Knowing your credit score beforehand can help you gauge your chances of approval and anticipate the interest rates you may be offered. 

That way, you can make better decisions about which products to apply for and whether now is the right time.

Monitoring for errors and fraud

Even if you’re not planning on taking out new loans or credit cards soon, checking your credit regularly is still a good idea. 

Research from the Federal Trade Commission found that one in five people have a mistake on their credit report. These mistakes, such as misattributed loans or incorrect late payments, can unfairly drag down your score. By identifying these issues early, you can take steps to correct them and minimize their impact on your credit health.

Unexplained drops in your credit score could also be a sign of identity theft or fraudulent activity. Regularly monitoring your score can help you catch these problems early and take action to prevent further damage.

Tracking your financial progress

Even if you're not planning to apply for credit in the near future, checking your credit score can be a useful way to track your overall financial health. 

As you work to pay down debt, establish a history of on-time payments, and maintain a healthy credit mix, your score should improve over time. Regularly checking your score can provide motivation and positive reinforcement as you work towards your financial goals.

How often should you check your credit score? 

While there's no hard and fast rule about how often you should check your credit score, most experts recommend checking at least once yearly. This allows you to stay on top of any changes to your credit report and catch potential issues before they become major problems.

However, if you're actively working to improve your credit or preparing to apply for a major loan, you may want to check your score more frequently. Many credit monitoring services offer monthly updates, which can be helpful in these situations.

It's important to note that checking your credit score does not impact your credit. This "soft inquiry" does not appear on your credit report. Only "hard inquiries," which occur when you apply for credit, can potentially lower your score by a few points.

If you don't want to check your score and don’t have immediate plans to take out a loan, you can place a credit freeze. This will prevent anyone from opening new credit in your name. Just make sure to remove the freeze when it’s time to apply for a new loan or credit card.

How to improve your credit score 

Once you've checked your credit score and identified areas for improvement, there are several steps you can take to boost your credit health:

1. Pay your bills on time: This is one of the easiest ways to improve your credit score, as payment history is the single most important factor in your credit score.

• To avoid late payments: Consider signing up for automatic payments, which automatically withdraw the amount due by the payment due date. You can create recurring calendar reminders or sign up for bill payment notifications.

1. Reduce your credit utilization: Keeping your credit card balances low relative to your credit limits can help improve your score. Aim to use no more than 30% of your available credit at any given time. You may also increase your credit limit by calling your card issuer to ask for a higher credit limit. However, some issuers will run a credit check before approving a higher credit limit (which can cause your score to drop temporarily), so it’s best to check before asking. 
2. Avoid applying for new credit unnecessarily: A hard inquiry appears on your credit report each time you apply for credit. Too many hard inquiries in a short period can lower your score, so only apply for credit when necessary. 
3. Maintain a mix of credit types: Having a diverse mix of credit accounts (e.g., credit cards, installment loans, mortgages) can help demonstrate your ability to manage different types of debt responsibly.
4. Keep old credit accounts open: The length of your credit history also impacts your score, so avoid closing old credit card accounts unless absolutely necessary.

Remember, improving your credit score is a journey, not a quick fix. You can gradually build and maintain your credit by consistently practicing good credit habits and monitoring your progress over time. 

The bottom line 

You should consider checking your credit score as a routine item, like getting your oil changed or cleaning your gutters. Even if you’re not currently in the market for a loan, it still helps to check your credit score just in case. 

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.