Your Money_ The Missing Manual - J. D. Roth [82]
How to Get Your Credit Score
While it's easy to get your credit report for free, learning your credit score takes a bit more work. Sometimes banks or lenders will let you see your score when you apply for credit, but you generally have to pay to get that info. Here are a few sites that can help you get a sense of your score:
myFICO (www.myfico.com) is the official site of the company that developed FICO scores. It's jam-packed with useful info and offers several different services that let you monitor your credit score (for a fee). You can get free trials of some of these services, so you can check your score once and then cancel before you get billed anything. You can also pay a one-time fee of $16 to see your score.
Credit Karma (www.creditkarma.com) lets you see your TransUnion credit score for free. Using the data in your credit report, Credit Karma anonymously compares you to other folks who use the site and offers tips on how to improve your credit rating.
Quizzle (www.quizzle.com) gives you free access to your Experian credit score. This site doesn't have Credit Karma's cool credit-comparison features, but it offers a variety of other financial tools and tips.
Credit Report Card (http://tinyurl.com/CRCtool) gives you a quick, free snapshot of your credit health. It doesn't provide an actual credit score, but instead gives you a grade (A+, C, F, or whatever) based on how the different parts of your credit score (described on The Anatomy of a Credit Score) compare to the general public.
Keep in mind that there's no such thing as a single, absolute credit score. Your score will vary depending on where you get it. For example, a FICO score based on your TransUnion credit record may be 755, while your Equifax score is 787. That's because each credit bureau has different info about you and score providers may tweak the formulas to emphasize different things.
Boosting Your Score
Simply knowing your credit score doesn't do you a lot of good. But if you're not happy with your score, you can take steps to improve it:
Pay off your debt. According to credit expert Liz Pulliam Weston, "The most powerful thing you can do to improve your credit score is to reduce your credit utilization." FICO reports that about one in seven people who carry credit cards are using over 80% of their credit limit. "Below 30% is good," says Weston. "Below 10% is better." Repaying your debt helps your pocketbook and your credit score. (See Chapter 4 for more on reducing debt.)
Pay on time. According to Weston, if your FICO score is 780, a single late payment can drop it 100 points. If your score is 680, a late payment can cut it 70 points. (For more info, see http://tinyurl.com/kill-scores.) If you miss a payment, don't panic: Do what you can to get current and stay current.
Only open new accounts you need. Don't open a store charge account just for kicks. New accounts are only a small part of your total score, but they do have an effect. So keep new accounts to a minimum, especially if you're planning a big purchase like buying a house.
Don't close old accounts. It's okay to cut up your cards or to freeze them in a block of ice, but to maximize your score, keep the accounts open. If you have to close an account or two, close newer accounts before older ones. For more on the pros and cons of canceling credit cards, see How and When to Cancel a Card.
Tip
If you don't use a credit card for several months, your card issuer can close your account, which can ding your credit score. To avoid this, make an occasional purchase with the card so the account seems active. One way to do this without risking temptation is to autopay your utility bills (see The electric company).
Keep tabs on your credit report. Even if you do everything right, your credit score can take a hit from identity theft and other forms of fraud. Even simple errors can hurt your score. So check your credit report regularly