Home Credit score Why it’s important to monitor your credit score

Why it’s important to monitor your credit score

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Do you know your credit score?

A credit score is a three-digit number between 300 and 900 that indicates your creditworthiness. In other words, this score impacts the likelihood that lenders will allow you to borrow money.

Basically, the higher your credit score, the better. You need a credit score above 600 to qualify for a credit card, and you need a credit score of at least between 620 and 640 to qualify for a mortgage in 2022.

With that in mind, credit monitoring is an essential part of fiscal responsibility.

Credit monitoring tracks your financial information and notifies you of any positive or negative changes in your financial situation, including new accounts opened in your name or major purchases, such as cars.

Although it cannot prevent fraud, it provides you with an early warning that can help you take appropriate action quickly to avoid damaging your finances. The sooner you know about any type of theft, the easier it will be to protect yourself.

In our increasingly digital world, fraudsters are getting better and better at extracting the sensitive information needed to practice identity theft, including opening credit card accounts and taking out loans in your name. .

A credit monitoring service can track your credit reports and scores and monitor your consumer information, allowing you to take the necessary steps to ensure you maintain a healthy credit score and don’t fall victim to credit theft. identify.

There are free and paid credit monitoring systems. Free tools, such as Credit Karma, offer basic services that allow you to monitor your credit score and financial activity.

Paid credit monitoring services offer more sophisticated tools, such as simulators, that can show you how specific actions will affect your credit score.

Both options are a great way to make sure you keep tabs on your credit score and protect yourself against identity theft.

iCASH is a online loan provider in Ontario which provides financial assistance.