MONITORING YOUR CREDIT SCORE AND CREDIT REPORT

Bad credit can result in unfavorable interest rates 

that cost you thousands when you take out a mortgage, 

a car loan or a student loan. 

It could block you from leasing that apartment
you’ve been pining for. 

And it can be a black mark on your record that even prevents 

you from landing your dream job.

Here are a few ingredients of a credit score:

- Payment History: 

Whether you pay your bills on time,
including credit cards, student loans, utility bills,
or any other lender or service provider
that reports to the big three agencies.
Getting this right is easy: don’t blow the due date. 

- Amounts owed: 

The breakdown of your credit balances,
and how they compare to the limits of what you’re allowed to take out.
If you’re maxed out, it can hurt. 

- Years of credit: 

The age on your accounts.
The longer your credit history,
the better lenders can gauge your ability to repay.
Unfortunately, the formula knocks young borrowers
who don’t have an established, detailed history. 

- New credit: 

How many accounts have you opened recently,
and how many lenders have inquired about your credit?
The more activity, the more it appears you’re about to go on a debt binge. 

- Types of credit: 

The mix of accounts you hold, such as auto loans, credit cards, student loans, or mortgages.

Don’t confuse credit monitoring with identity theft protection. 

Credit card fraud is just a piece of the larger problem of identity theft. 

Paying someone to monitor your credit will not halt identity theft or unauthorized 

uses of your Social Security number or other personal data, 

although it can help you detect problems before they escalate.