The Ultimate Guide to Tracking Your Credit Score

Your credit score is more than just a number—it’s a crucial measure of your overall financial health. A good credit score can open doors to better loan rates, credit card offers, rental agreements, and even job opportunities. Whether you’re just starting to build credit or already have experience managing it, tracking your credit score is key to financial success.

This guide will break down everything you need to know about credit scores, how to track them, and what steps you can take to keep your score healthy.

What Is a Credit Score?

A credit score is a three-digit number that represents your creditworthiness. Lenders, landlords, and even employers use this number to assess your financial responsibility. Credit scores generally range from 300 to 850, with higher scores indicating better creditworthiness.

Here’s a breakdown of what the numbers typically mean:

• 300–579: Poor credit – You may struggle to get approved for loans or face high interest rates.
• 580–669: Fair credit – You might get approved for credit, but terms won’t be as favorable.
• 670–739: Good credit – Most lenders view you as a solid borrower, and you can access good rates.
• 740–799: Very good credit – You’ll likely qualify for better-than-average loan rates and terms.
• 800–850: Excellent credit – You can access the best available interest rates and financial products.

Why Your Credit Score Matters

Your credit score impacts several areas of your financial life, including:

• Loan approvals: Higher scores improve your chances of getting approved for loans and credit cards.
• Interest rates: A better score means lower interest rates, saving you money over time.
• Housing applications: Landlords may check your score before approving rental applications.
• Employment opportunities: Some employers, especially in financial sectors, check credit scores during hiring.

Tracking your credit score is the first step in making sure you’re financially on track and eligible for the best financial products available.

How Is Your Credit Score Calculated?

Credit scores are calculated based on five key factors:

How to Track Your Credit Score

There are several ways to track your credit score, and you don’t need to pay for most of them. Here’s how you can easily stay on top of your score:

1. Use Free Credit Monitoring Tools
   • Credit Karma: One of the most popular free credit tracking services. Credit Karma offers updates from two of the three major credit bureaus—TransUnion and Equifax. It also provides insights into what is helping or hurting your score.
   • Experian: The Experian app allows you to track your Experian credit score for free and alerts you to any changes or potential fraud.
   • Credit Sesame: Another free service that provides updates on your credit score and offers personalized tips on improving your score.
2. Check with Your Credit Card Issuer or Bank Many credit card companies and banks offer free credit score tracking as a benefit. For example:
   • Discover offers free access to your FICO score even if you’re not a cardholder.
   • Chase Credit Journey provides a free VantageScore, which is updated regularly.
3. Request a Free Credit Report The Fair Credit Reporting Act (FCRA) entitles you to a free credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once per year. You can request these reports at AnnualCreditReport.com. While your credit report doesn’t include your score, it does show the information used to calculate your score. Checking this regularly helps catch errors or signs of fraud.
4. Paid Services for Comprehensive Monitoring If you want extra features like identity theft protection or more frequent updates, you can opt for paid services such as:
   • MyFICO: Offers regular access to your FICO score, credit reports, and tools to simulate how certain financial decisions will affect your score.
   • IdentityForce: Provides credit monitoring along with identity theft protection.

How to Keep Your Credit Score Healthy

Tracking your score is just the first step. Here are proven strategies to keep your credit score healthy or improve it if necessary:

1. Pay Your Bills on Time: Since payment history is the biggest factor in determining your credit score, always pay your bills by the due date. If you’re struggling to remember, set up automatic payments.
2. Keep Credit Utilization Low: Try to use less than 30% of your available credit limit. For example, if you have a credit limit of $10,000, try to keep your total balances below $3,000.
3. Don’t Close Old Accounts: Even if you’re not using a particular credit card, keep it open. The length of your credit history impacts your score, so the older the account, the better for your score.
4. Limit New Credit Applications: Every time you apply for new credit, it results in a hard inquiry on your credit report, which can temporarily lower your score. Apply for credit only when necessary.
5. Diversify Your Credit: Having different types of credit, such as a credit card and a car loan, can improve your score. However, only take on new credit if you can manage it responsibly.
6. Dispute Any Errors: If you spot errors on your credit report (e.g., an account you don’t recognize or incorrect late payments), dispute them with the credit bureau. Correcting errors can quickly boost your score.

Take Control of Your Credit Health

Your credit score is a vital part of your financial health, but it doesn’t have to be a mystery. By understanding what impacts your score, regularly tracking it, and taking simple steps to maintain it, you can build a strong financial foundation.

Now that you know how to track your credit score, make sure you’re also managing your debt wisely.

Use our DTI Calculator to ensure your debt-to-income ratio stays in a healthy range.