Fixing Your Credit: Monitoring the Progress

The process of fixing your credit can seem like it takes forever. Your credit was usually not ruined in a day and it will not be rebuilt during that amount of time either. In order to accurately rebuild your credit, it may take several years of effort on your part. However, we know that it can be done by following certain steps. If you are in the process of rebuilding your credit, you will periodically start to wonder how you are doing. You want to know that the steps that you are taking every month are actually doing something to help you and your credit score. Here is some basic information that you need to know about monitoring your progress.

Credit Report

The best way to monitor your progress on fixing your credit is to simply pull your credit report. Your credit report is what every lender is going to look at as soon as you submit a loan application. Your credit report has everything that you need to know right there. It will list all of your creditors, your monthly payments, and how much you owe. It will tell your creditors the status of your accounts and whether you are making the payments on time or not. 

One of the most important things that your credit report can tell you is your credit score. Your credit score is basically a combination of all of the factors that make up your credit report. If everything is going well on your credit history, your score will reflect that by going up. If everything is not going so well, your credit score will remain low. 

This means that you should use your credit score as a gauge to see how you are doing. When you first make the decision to fix your credit, you should look at your credit score just to see where you are. You cannot know how far you need to go if you have no idea where you are currently at. This will give you a good gauge to see how things are going. 

How to Check

Now that you know that you need to look at your credit report, the question becomes how you go about doing this. You are actually entitled to a free report from all three of the major credit bureaus each year. It will give you the basic information about your accounts and their status. However, these free reports will not provide your FICO score. In order to get the report that contains that information, you will have to purchase one from FICO. While it will cost a little bit of money, it is usually well worth the small cost to see how you are doing.

One thing that you will want to keep in mind is that you do not want to check it too often. Frequent credit inquiries can actually help to lower your credit score. Therefore, you will want to limit the amount of times that you check your score. 

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