Checking Your Credit Score? Avoid These Six Mistakes

credit reports

Do you know what your credit score is? Do you know what other people see when they check your credit score? If you’re not sure, it’s probably a good idea to personally check your own score.

Everyone is eligible to one free credit report each year from each of the three major credit reporting agencies. Meaning you can check your score from a different reporting agency at different times of the year.

While federal law doesn’t give individuals access to their credit scores for free, there are still free ways to access the figure. “Some credit card issuers put your score on your statement or give you access to it online,” says Geri Detweiler “You can also find free scores online (you can get two of your credit scores for free on Credit.com, updated monthly, with personalized suggestions for improving yours).”

When you do check your credit score, be sure to avoid these pitfalls as reported by via Yahoo Finance:

1. Not keeping a credit report copy

Whether you save a printout of your credit report or keep the information on your laptop (ideally in a password-protected file), if something changes, or you think something is different from what you remember, it’s nice to have past information for comparison. And if you need to dispute something, you’ll be glad you have the copy.

2. Not checking your report with all three bureaus

Not all creditors report to all three agencies, and the agencies don’t share information. Inaccuracies can creep in, including information that should have aged off and has not, errors introduced by mistyping or same-name mix-ups. If you find an error on one, it’s smart to check the other two to make sure it gets cleared up everywhere it appeared.

3. Not getting the same score every time

Your credit reports contain the information on which your credit scores are based. But while you have one credit report with each bureau (Equifax, Experian, and TransUnion), that data can be used to create hundreds of different credit scores. All credit scores are three-digit numbers that strongly influence whether you’ll be extended credit and on what terms, but that’s where the similarities end. Scoring models can be specific to a certain industry — credit card, mortgage or car loan, for example — and scores can vary, depending on which credit reporting agency was the source of the data. If you are trying to track changes in your credit, comparing anything other than the same scoring model from time to time isn’t very useful.

4. Not looking at the scale on which your score is measured

Scores are not all measured on the same scale. So a score that is “excellent” on one scale may be merely “good” on another. (Yes, that even goes for FICO scores; the FICO NextGen Score, for example, has a range of 150 to 950, while most FICO score models run from 300 to 850.) So the number doesn’t mean much without context.

5. Paying when you haven’t used your free reports already that year

You are entitled to three free credit reports every year (and in some situations or some states, even more). There are times that it makes sense to pay for an additional one. For example, say you plan to make a big purchase and you disputed an item that was likely bringing your credit score down and you want to make sure the report is now correct — it might be worth it to pay for an extra one. However, it’s ideal to make sure you get your free reports before you pay for any further copies.

6.Getting obsessed with tiny changes

It’s rare for a credit score to stay exactly the same from month to month. Scores fluctuate, and you want to focus on trends, not moves of a few points up or down.

The good news is if you are reviewing your credit reports on an annual basis and checking your credit scores each month, you are already avoiding the biggest mistake — not having a clear idea of where you stand. Doing so will also alert you to changes that could suggest identity theft, which would allow you to limit the damage and get it resolved quickly.

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