How Often to Check Your Credit Score

Your credit score is a three-digit number that lenders look at to determine how much of a credit risk you are. This number is based on your credit report, which lists all of your credit accounts and payment history. You will probably want to check your credit report more frequently than you check the score itself. This is because the credit report can be free, but you have to pay for the credit score.

Before Applying for Loan

Check your credit report and credit score at least six months before you plan to apply for a large loan, such as an auto loan or mortgage. This gives you an idea of where you stand and whether you will qualify for the top tier of interest rates on the loan. Checking your score early gives you time to clear up any mistakes on your credit report or pay off debt to boost your score before you apply for the loan.

Annual Credit Report

The Federal Trade Commission recommends checking your credit report at least once per year. All people are entitled to one free credit report each year from TransUnion, Equifax and Experian. This credit report does not include your credit score, but it has all the information that is used to calculate your score. Checking this free credit report helps you identify errors as they occur. One strategy is to stagger the credit reports from the three bureaus so you get one free report every four months.

Suspected Identity Theft

If you suspect you are a victim of identity theft, check your credit report immediately. You might have received a piece of mail or phone call about an account you never opened, both of which are warning signs of identity theft. Obtain your credit report to confirm whether accounts have been opened in your name. After finding identity theft on your report, check your credit report again every few months to quickly identify further fraud.

After Credit Denial

Consumers are entitled to a free copy of their credit reports after being denied credit. Check your credit report to find out why your application was denied and to learn what areas you should focus on to boost your credit score. Follow the instructions on the notification for denial to get the free credit report within 60 days.