How is my credit

Before you apply for a new credit card, personal loan or mortgage, it's important to know your score, since it will give you insight into what products you may qualify for and what interest rates to expect.

Checking your credit score doesn't hurt your credit, and even if you're not applying for credit, it's smart to get into the habit of checking it regularly. In fact, the simple act of checking your credit score is one way you can improve your credit.

If you notice a dip in your score, it may alert you to potential fraud or errors on your report. Checking your score monthly may help you catch issues early and get a head start on resolving them.

A credit score is a three-digit number, typically ranging from to , that is the result of an analysis of your credit file. That magic number tells lenders your potential credit risk and ability to repay loans. Credit scores consider various factors, such as payment history and length of credit history, from your current and past credit accounts more on that below. The rating you receive depends on the credit score you have. Below, you can check which rating you fall into, using estimates from Experian.

FICO and VantageScore credit scores have some similarities: In both, scores range from to and payment history is the most influential factor in determining your score. This kind of check can negatively affect your credit. Read more about the difference between hard and soft credit inquiries. If you see errors on your credit reports that may be affecting your credit scores, you have options to dispute those errors.

In addition to creating a username and password, Credit Karma may ask you for your Social Security number. This information allows us to confirm your identity with the consumer credit bureaus to ensure that we show you accurate data. You must be at least 18 years old to sign up for a Credit Karma account.

The best site for free credit reports depends on what you need. If you want to take a look at your credit reports from Equifax and TransUnion, you can do so on Credit Karma. The Fair Credit Reporting Act entitles you to one free copy of your credit report from each of the three major consumer credit bureaus every 12 months. You can order them online at annualcreditreport.

If you want to learn more about how Credit Karma collects and uses your data, take a look at our privacy policy. Getting your free credit scores. Get your free scores. What to know about your free credit scores on Credit Karma Updated June 20, This date may not reflect recent changes in individual terms. How does Credit Karma get your credit scores? Credit scores are calculated based on a method using the content of your credit reports.

Score providers, such as the three nationwide credit bureaus -- Equifax, Experian and TransUnion -- and companies like FICO use different types of credit scoring models and may use different information to calculate credit scores.

Credit scores provided by the three nationwide credit bureaus will also vary because some lenders may report information to all three, two or one, or none at all. And lenders and creditors may use additional information, other than credit scores, to decide whether to grant you credit. So how can you get credit scores? Here are a few ways:. You can also create a myEquifax account to get six free Equifax credit reports each year. Sometimes, people talk about your credit.

What they mean is your credit history. Your credit history describes how you use money:. If you have a credit card or a loan from a bank, you have a credit history. Companies collect information about your loans and credit cards.

Companies also collect information about how you pay your bills. They put this information in one place: your credit report. Businesses want to know about you before they lend you money. Would you want to lend money to someone who pays bills on time? Or to someone who always pays late? Businesses look at your credit report to learn about you.

They decide if they want to lend you money, or give you a credit card. Sometimes, employers look at your credit report when you apply for a job. Cell phone companies and insurance companies look at your credit report, too. A company called a credit reporting company collects your information. There are three big credit reporting companies:. You can get a free copy of your credit report every year. That means one copy from each of the three companies that writes your reports.

Someone might say you can get a free report at another website. They probably are not telling the truth. A credit score is a number. It is based on your credit history. But it does not come with your free credit report unless you pay for it. A high credit score means you have good credit. A low credit score means you have bad credit. Different companies have different scores. Low scores are around High scores are around It is very important to know what is in your credit report.

But a credit score is a number that matches your credit history. If you know your history is good, your score will be good. You can get your credit report for free. It costs money to find out your credit score. Sometimes a company might say the score is free. But if you look closely, you might find that you signed up for a service that checks your credit for you.

Those services charge you every month. Before you pay any money, ask yourself if you need to see your credit score. It might be interesting. But is it worth paying money for?

Without a credit history, it can be harder to get a job, an apartment, or even a credit card.