What Is A Credit (Report) Rating and Is It Really a Big Deal?

Do you remember back in grammar school when you got a report card?  Your teacher averaged your grades for each of your subjects.  For example, if you got an “A” in math, it meant that you consistently did well on tests and class work throughout the semester in that subject. 

Likewise, a credit rating is a “grade” assigned to your borrowing, charging and re-payment activities.   In short, it gives a snapshot of your credit-worthiness (how you handle finances).

To a potential creditor or employer, a good credit report rating indicates that you are responsible with your financial obligations…and that is a “plus” in their consideration of your application.

So obviously it’s very important to protect your credit rating by:

Making sure you make bill and loan payments on time

Not taking on more debt than you can handle

Another way you can protect your credit report rating and your good name is to request and monitor your credit report regularly to ensure that identity thieves are not wreaking havoc on your credit.

What is a credit monitoring service?

For a fee, a credit monitoring service offers to monitor your credit reports and alert you to any activity or changes to your accounts, including possible fraud.  Fees and the range of services vary widely.  Many of the services only monitor one of the three major consumer reporting companies. 

Commonsense rules if you’re looking to sign up for a credit monitoring service…by making sure you understand what you're getting before you buy.  If you’re in the U.S., be sure to choose a service that monitors all three credit reports from the nationwide credit bureaus on an ongoing basis.  Also check out the company you’re considering with your local Better Business Bureau, consumer protection agency and/or your state Attorney General.

    Order Your Credit Report  it's a snap!