Credit Report Check - The Importance of Credit Monitoring and Why You Should Always Be Aware

Credit scores will range from 350-850 at the bureaus of Trans Union, Equifax, and Experian. The scores will lenders determine how responsible or how risky you will be for handling credit and using a loan. If you have been building credit for many years you will know how things can change in the credit and lending environment that may effect your score.

There are many credit card companies that take advantage of their customers by raising rates unexpectedly. I've heard numerous examples where one has a been using their credit cards responsible, and then all of a sudden their credit lines reduce and FICO scores drop. An example of how this happens is when one has a credit limit of ten thousand dollars on one card and a balance of five thousand dollars. If the credit card company decides to reduce their limit to seven thousand dollars then in stead of being at 50% of their limit, they are now at 71% of their limit.

The problem with that is that now the credit bureaus see this and it creates a negative mark in their eyes and so the same persons credit score will reduce significant. The frustrating thing about this is that the credit card companies can do this whenever they want for no reason at all. In fact, it doesn't matter how well you handle your credit, they can still have the power to do this to you. Once your credit score drops, then your interest rates could increase, and the chances of getting a reasonable loan are more difficult. It is for this reason and many more that it is important to see the latest scoring of your personal credit report.