I believe you should and here are just 3 Reasons Why You Should Know and Monitor Your Credit Score.

What is your credit score? 
If you don’t know your credit score then it’s high time you find out because it’s in your interest to do so.  Here are some very good reasons for knowing how you rate with creditors, and how to monitor your credit score.

First, some background. 
Your credit score is based on information about you from companies that gave you credit in the past.  They report on your payment history to the three major credit reporting bureaus. They in turn, then create a numerical score, sometimes call a FICO score – named after the Fair Isaac Corporation.

Think of your credit score like grades you get on a test in school.  The higher your score, the better your credit rating.  FICO scores range from 300 to a perfect 850.  Anything under 700 is in need of some improvement.  So why should you care?  Well here are just 3 reasons why you should:

Reason #1: 
A more affordable mortgage.  A higher credit score will get you a lower rate on your home loan.  Particularly in these days of tightening credit, banks pay close attention to your FICO score when you apply for a home loan.  Imagine this. A mere 2% reduction in the interest rate on a 30 year fixed mortgage for a $200,000 home could save you a whopping $100,000!

Reason #2:
Lower insurance premiums.  Many auto insurance and health insurance companies check your credit score before they set the premium on your insurance.  They have found that people with a higher FICO score are less likely to file a claim against their policy.  So, they reward customers with better credit by offering them a lower premium on life, health, and auto insurance.

Reason #3: 
A better job.  It’s true.  More and more employers are checking your credit report when you apply for a job.  While they may be getting the report to verify the information you put on your job application, what’s to stop them from seeing how you handle your financial affairs? 

Many more aspects of your life are being affected by your credit score than you might have imagined.  Make it your goal to raise your score and you may well raise your standard of living through lower interest rates, a better job, and a more affordable lifestyle. 

Back to the original question:  Should You know And Monitor Your Credit Score?

It’s easy to get a copy of your credit report.  In fact, you are due a free copy each year from the three major credit reporting bureaus.  Just log on to annualcreditreport.com (this is a web site supported by the credit bureaus).  It is entirely your choice whether you order all three credit reports at the same time or order one now and others later. The advantage of ordering all three at the same time is that you can compare them.

However, please take this point into consideration: When taking all 3 at the same time, you will not be eligible for another free credit report for 12 months. On the other hand, the advantage of ordering one now and others later (for example, one credit report every four months) is that you can keep track of any changes or new information that may appear on your credit report. 

I’m sure you’d now agree that it is important to monitor your credit report, since it does change over time as your lenders send new information.

Note that your free credit report will not contain your FICO score.  The three major credit bureaus (Equifax, Experian, and TransUnion) will be happy to sell you that piece of information, as will any number of other web sites.  Shop around for the best deal, and don’t get hooked into signing up for a monthly service.