With the economic effects of the pandemic still evident in the United States, it is important to understand your credit score and know what to do to ensure that it stays in good standing. A credit score is a measure of your ability to handle financial responsibility and is used by creditors and lenders when deciding whether to lend you money. Checking your credit score is a great way to stay on top of your financial well-being and should be done regularly. But did you know that you can check your credit score for free once a year?

Benefits of Checking Your Credit Score

Knowing your credit score is important, whether you’re seeking a loan, applying for a job, or opening a credit card. A good credit score is vital for anyone looking to apply for a loan or mortgage, as most lenders look at your credit score when deciding to grant you financial assistance. It is also important for anyone looking to rent an apartment, as some landlords check your credit score to assess whether you would be a reliable tenant.

It is easy to check your credit score and doing so can provide a lot of benefits. Checking your credit score can help you identify and dispute potential errors on your credit report. Checking your credit score regularly can also be beneficial in monitoring any unusual activity, such as fraudulent charges.

How to Check Your Credit Score for Free

Under the Fair Credit Reporting Act, United States citizens have the right to view one free copy of their credit report from each of the three major credit bureaus — Experian, TransUnion, and Equifax — every twelve months. This can be done through AnnualCreditReport.com. You will be required to provide specific personal information, such as name, Social Security number, and date of birth, to ensure that your credit report is accurate.

The information on the credit report that you receive is similar to the information that would be seen by potential creditors, employers, and landlords. It will include a summary of all your accounts, payment history, debt, inquiries, and any collections or public records associated with you.

The Bottom Line

Checking your credit score is an important part of responsible financial management. You are entitled to view one free copy of your credit report from each of the three major credit bureaus once a year. Doing so can provide a wealth of information and insight into your financial history. Checking your credit report can help you make more informed financial decisions, provide you with peace of mind, and alert you to any potential fraudulent activity.