How To Check Your Credit Score For Free With CreditWise
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When it comes to your credit score, staying on top of it is crucial.
This is where free credit monitoring services can come in. You can often check your credit with your bank or credit bureau. Many credit card issuers, including Chase, American Express, and Discover, offer free credit monitoring services that allow cardholders to regularly check their credit scores. Some even offer credit monitoring if you’re not a customer.
One such example is CreditWise, a free credit monitoring service offered by Capital One to anyone wishing to check their credit score. It alerts you to new credit activity, offers detailed information about what is affecting your score, and gives you suggestions on how to improve it.
Whether you have a Capital One credit card or not, here’s how this free program can help you stay up to date on your credit and why it’s important to monitor it regularly.
What is CreditWise?
Capital One’s CreditWise is an online tool and application that allows you to monitor your credit score. It uses VantageScore’s 3.0 scoring model to measure your credit, provided by TransUnion. This template evaluates criteria similar to your FICO score and you will receive an updated score every week.
You do not need a Capital One credit card to use CreditWise. While this is a standard offer for Capital One cardholders (and you can access it using the same mobile app), it is available regardless of what credit cards you hold. There are only two conditions: You must be at least 18 years old and have a valid Social Security number that matches a credit profile with TransUnion, one of the three major credit bureaus. You can access the tool online, through the CreditWise mobile app, or if you already have a Capital One card, through the Capital One mobile banking app.
CreditWise has a few additional features that are also useful for measuring credit health. You can use a credit score simulator to see the potential effects that certain actions can have on your credit score, such as paying off debt or closing a credit card. It also offers credit alerts so you can stay informed of inquiries or new accounts on your credit report, dark web monitoring, and social security number tracking to alert you to fraud or fraud. ‘potential identity theft.
The free tool also shows you personal factors that can affect your credit, such as the age of your oldest line of credit, the amount of available credit you have, or your credit utilization rate – the relationship between your credit card balances and your overall limit.
Does using CreditWise impact your credit score?
CreditWise allows you to check your credit as often as you want without hurting your credit score. When you check your own credit with CreditWise, this is considered an indirect investigation of your credit report. Unlike direct requests (when an issuer checks your credit to assess a new card request, for example), indirect requests do not appear in scoring models, so they have no impact on your credit score. credit or your report.
Why is it important to monitor your credit
Your credit is a fundamental part of your finances, and regular monitoring can help you keep track of your overall financial health.
“Your credit rating is one of the most important numbers in your financial life because it determines whether or not you will be approved for loans and, if so, what interest rates you will be charged,” says Ted. Rossman, a senior industry executive. analyst at CreditCards.com (like NextAdvisor, CreditCards.com is owned by Red Ventures). “It’s a good practice to check your credit score at least every three or four months. “
Errors on credit reports are more common than you might think – one in five people find an error on their credit reports at least once in their life, according to the Federal Trade Commission. Proactive monitoring of your credit can help you alleviate credit problems or errors before you apply for a line of credit, such as a mortgage or credit card, and help protect you from identity theft.
How to Check and Monitor Your Credit Score for Free
There are several ways to check your credit score for free, and regular access to your credit report is protected by federal law.
You can sign up for a free service like Capital One’s CreditWise, Discover ScoreCard, or Experian to view your credit score. Most credit card companies provide your credit score for free when you are the card holder – check your monthly bank statement or log into your account online. If you can’t find it, call your issuer to ask if they can provide you with your credit score information and where to find it.
Keep in mind that the credit score you see when checking your own credit may not be the same that a lender or issuer uses to assess your loan or credit card application. Your score may vary depending on the credit bureau the lender uses to complete your report and the scoring model they are looking at, but checking your own score is still a great way to get a feel for your credit range.
There is a big difference between your credit score and your credit report. Your credit report is a record of your credit history and describes your performance as a borrower, while your credit score is a three-digit number calculated from your credit report.
To access your credit report, you can go to AnnualCreditReport.com to get free copies of your credit reports each week from the three major credit bureaus (TransUnion, Equifax, and Experian) until April 2022.
Your credit rating is an important indicator of your financial health because it affects the loans you qualify for, such as mortgage or auto loans, as well as the interest rate and other terms that lenders assign. Homeowners, cell phone companies, utility providers, and even some employers are also careful about your credit.
“This is especially important if you plan to apply for credit soon, because it helps to know where you are at and it would be good to correct any mistakes before you apply,” says Rossman. “Everyone should check in at least a few times a year. “
By regularly checking your report, you’ll be able to know exactly where your debt is, spot opportunities for improvement, and spot errors early.