Have you signed up with Credit Sesame yet? Just wondering if you haven't, what you're waiting for? 🙂 It's a completely free way to track your credit score, with monthly updates, and they send you an email automatically letting you know when your credit score changes.
Credit Sesame is a great way to keep an eye on your credit score. It's easy to think you know everything going on with your credit but have you ever heard those stories about identity fraud where someone else has opened credit in your name and isn't paying the bills? If you were using Credit Sesame it is unlikely an unfortunate circumstance such as this would pass by without your seeing it because just one late payment can ding your credit score.
Why is it important to know your credit score?
Dave Ramsey says this about credit scores: “Like it or not, your credit score is not an indicator of winning financially. All it tells you is whether you are good at borrowing money and paying it back. That’s it.”
Mr. Ramsey then goes on to say the only way to have a good credit score is to go into debt and stay in debt, but this is untrue. No one says you have to keep a running balance on your credit card. My credit score was the highest in my whole life after I went through debt consolidation and didn't charge one thing to credit for over two years. So I know from firsthand experience that you don't need to stay in debt in order to have a good credit score.
I have heard that auto insurance companies are now starting to check your credit score and adjusting your rates accordingly. I suppose you can make sure the company you are going with does not use credit score, but I find that a hassle.
I'd also like to know how Mr. Ramsey expects a young person to get out on their own for the first time. If they have to pay cash for their first home, well that means they may need to spend ten years with mommy and daddy before they can save enough to buy a home. That leaves renting… although I suppose they could get into a roommate situation with friends. But one day that youngster will want to be in his or her own home, and most apartment complexes require a credit history before they will allow you to rent from them.
Cellular phone companies want to know your credit score before they give you a chance to do business with them. Over ten years ago when my sister's credit was wrecked she was unable to get a cell phone to use for her business and asked me to get her a cell phone in my name. I did it for her, and luckily it has worked out over the years that she has paid her bill on time and faithfully (for the most part).
Last month when I checked my credit score was 761 and this month it is up to 770. Whoo! Slowly creeping up there.
Have you signed up yet? Give Credit Sesame a try today and let me know in the comments what your score is, I'd love to see it!