I highly recommend everybody check their credit score at least once every year. I have had numerous errors over the years which have negatively hurt my score.
Studies show that 30% of all credit reports are wrong! One time, I had some delinquent payment due to a $8 utility bill that I owed after moving out of a rental which I had no idea. That delinquent bill dragged down my credit score by 100 points and almost cost me $20,000 in mortgage refinance savings over 5 years!
Good credit is essential for student loans, auto financing, credit card rates, and getting the lowest mortgage possible. The difference could be in the hundreds of thousands over the life of a loan.
Furthermore, it is shocking to find out that the average credit score for a rejected mortgage application was OVER 700 during the financial crisis. Banks have become very stringent with mortgage loans and refinancing, which is why you need to know your score in order to improve your score.
As of 2019, the average FICO score in America is now a very good 704. Therefore, the competition from credit borrowers is even higher than ever before.
BENEFITS OF CHECKING YOUR CREDIT FREQUENTLY
* Protect against credit and identity theft.
* To make sure you don’t have an errors on your report which unfairly hurt your credit.
* Shows whether you have any liens on your credit which prevent you from getting a loan.
* Prepares you for what you need to do to improve your credit.
* Prevents you from wasting time during a mortgage application process which might not go through.
* Gives you bargaining power when taking out a car loan or a loan for any other high ticket merchandise.
The easiest way to check your credit score for free nowadays is via your online bank or your credit card.