|Lenders use credit scores to help them determine the "credit worthiness" of consumers applying for credit cards, lines of credit, or loans. Your credit score is used for figuring out whether or not you qualify for credit, and if so, what terms and interest rates you will receive.
Credit scores are calculated based on data in your credit reports and, as fluid numbers, change over time, sometimes on a daily basis! That's why its so important to stay on top of your credit reports for changes that could affect your credit scores.
Consumers are allowed by law to obtain thier credit report once a year from the three major credit buearues, Experian, EquFax and TransUnion at no cost. Credit reports can be obtained more often, however there is a charge for this service. Obtaing one free credit report from one credit breaueu at a time every four months allows you to monitor your credit throughout the year. You can obtain a free credit report at freecreditreport.com.