Welcome to part two of the money talk about credit! I highly recommend reading part one first as this post is meant to be a continuation. So, now that you have pulled your credit report, let's pull our credit score. There are a few different ways to do this. When you go to pull your credit report from the three bureaus, they will ask if you want to purchase your credit score. You do not have to go this route! I will always recommend the free options first. Remember in part one when I said you really have hundreds of reports creditors can use? The same thing goes for credit scores. The scores are calculated in multiple ways so there may be variances between the scores you or a creditor pulls.
Credit Karma! This is my favorite way to pull my credit score. You can download the app or go to the website. The site will ask you a few questions in order to pull your score but it is completely safe and legit. I have been using it for years! Credit Karma will allow you to see scores based on your TransUnion and Equifax credit reports.
Each score is based on six different factors:
Always try these FREE options before paying for your credit score. It gives you a pretty good idea of where you stand!
When I started on this financial journey, my credit score was about 590. I had a lot of derogatory marks and no credit history. My wake up call was when I went to my local credit union and couldn't even qualify for a $200 credit limit. I used that as motivation! I got all collection accounts off my credit and watched it jump up tremendously. I got my first card with Capital One. I used that card strictly for gas and paid it off in full every month. Just making those small changes and being consistent my score jumped up over 100 points. My score is now in the 730s according to Credit Karma. I didn't have to pay anyone to fix it for me. I just had to have the drive and discipline. It doesn't matter where your credit score is now, it can be fixed! My next post will go into detail on how to get that done.