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How often should you check your credit score?

Estimated reading time: 2 mins

Credit scores are very telling. Your own rating informs banks and other lenders just how reliable and savvy you are with your money. If it’s bad, you’re likely to be refused loans or be subjected to higher interest rates in the event you’re permitted to borrow money. However, if it’s good, you’ll be accepted with lower interest rates due to your proven track record with your finances.

Still, one question remains; how often should you check your credit score? Read on to find out more!

A ‘set time’?

There’s no one ‘set time’ when you should check your credit score. The amount of times you do will depend greatly on if you’re feeling safe and confident with your finances. If you feel all your finances are in good shape, checking your score once or twice a year should be fine. This will give you plenty of breathing room when assessing things, and these quick checks will be quick and easy.

Of course, if you’re feeling less confident in your money situation, more regularly checks are advisable. This will help you keep tabs on everything that’s happening with your credit score, grant you peace of mind if everything’s fine, and alert you to any potential dangers you may have suspected. If you’ve got the itch to check, scratch it – but otherwise once or twice a year is enough!

Late payments

Timeliness is a big part of checking credit scores, but not only in terms of gut feelings and suspicions either. Many circumstances influence your credit score, and the big one is your responsiveness when it comes to making payments.

Late bill, mortgage and rent payments will all cause your score to suffer! After all, renters go out of their way to pay on time for a better credit score, so keep this in mind if you fall behind. It’s important to stay on track with all the imbursements you need to make, because if you owe people for too long it communicates one thing; you’re bad with money!

That said, if you find yourself struggling, opening a basic bank account should help you gradually rebuild your credit score. Because it helps control your day-to-day spending, the funds needed for bills and important payments is set aside for you. You’re free to spend everything else as you see fit, but if you need to change your behaviour slightly, start here!

Fraudulent activity

Of course, it’s not always the case that you’re responsible for your financial misfortunes. If you suspect fraudulent activity with your finances, then of course you’ll need to check your score when these issues arise. This will help you ascertain the damage that’s been done to your financial history and make amendments from there.

Analysing your credit score is a great way to determine if there’s been any unauthorised uses of your finances – whether your cards have been stolen by a third party or if you’ve got an irresponsible partner. Don’t leave things to chance or shrug off any concerns – follow up and investigate and check your credit score.

 

About the author /


Simon is a creative and passionate business leader dedicated to having fun in the pursuit of high performance and personal development. He is co-founder of Applied Change, a Business Change consultancy based in the UK. Simon is also an Ambassador for Gloucestershire business. Simon is an Associate Member of the Chartered Institute of Professional Development.

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