Credit Scoring plays an important role in your financial management. Lenders are going to inquire into your credit rating in order to check your reputation when it comes to repaying debts. Many employers also consider your credit score when you apply for a job. It is therefore extremely important that you maintain a good credit score. You need to work cautiously over the years to establish a good payment track record in order to build up a good credit score. Most lenders consider a credit score above 630-650 as a reasonable score and they would not mind providing you with new credit, however if your score is below 630-650 then you may be in trouble.

How to monitor your credit score

It is extremely important that you keep a track of your credit scores. You must check your credit report periodically to verify the accuracy of the credit reporting. Many times creditors tend to mix up your accounts with other customers leading to inaccurate credit reports. Also it is important to monitor your credit score on regular basis in order to check for any alterations like change of address, application of new credit or opening or closing of a new account. This will help you to prevent identity theft.

 
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How to get your free credit report and score

Now that you know the importance of monitoring your credit history on regular basis, you must also know how to avail your free credit report and score.  The US government passed a law in the year 2004-2005 enabling the US residents to avail their credit reports for free depending on the area that they stay in. Recent amendment to the act allows the US residents to avail their free credit reports by logging on to a specific website. This website provides you your credit report of all the four major credit rating bureaus namely; Equifax, Transunion, Verifax and Experian. The process to order your free credit report is extremely easy and you just need to follow few simple steps and you will be having your credit report handy

How to order your free credit report online

1. Log on to website specified by the state government. You will get a drop down menu asking for your state. Select the state from the drop down menu and now you will get an online form asking for your personal details.
2. It is recommended that you have a list of all your account numbers, credit cards and loan accounts handy. This information is required by the credit rating agencies to verify your request. Keeping these details handy will ensure that you can complete the form then and there instead of going and finding the details when you are at the last step of ordering your free credit report. Please note that this site is a secure site and the request page would expire if there is no activity on it for stipulated time.
3. Once you have filled in and verified your personal details, you can order your free credit report. Please note that you can order only one report free from each agency throughout the year, so it is best that you order your free report from any one company on quarterly basis.
4. Credit reporting agencies are authorized to advertise their credit monitoring services which can be availed by paying a fee. You can consider these services if you are planning on applying for loan.
5. When you order a free report online, it is not mailed to you, so you must save it on your computer. One must be extremely careful once they are on the page where they can see their credit report. You must click on the save option which is on the top left hand corner of the page. Be careful and do not click the back button because you will not be able to have access to free report from that particular agency for next one year.
6. Your report is saved in PDF format. Do not save it on your desktop. Save it in a secured folder.

You can also order your free credit report over the phone. You need to call 1-877-322-8228. The customer service officer will ask you few verification questions based on your social security number. Once you have cleared the verification, you will be in the position to order your free credit report. You will receive your credit report in mail in two to three weeks

You also have the option of mailing your request for credit report. Just download and print the request form and fill it with your personal details. Mail this form to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281 and you will receive your free credit report in two to three weeks.

Ensure that you keep a track of your credit score in order to have hassle free financial dealings.

 
Check out FreeCreditScore.com and annualcreditreport.com.