Everyday Cheapskate

Somewhere between having no clue what your credit score is and paying $16 every few weeks to get a copy of it lies a healthy middle ground. Think of your credit score as you do your weight. You need to weigh yourself occasionally to stay on top of things, but most health professionals consider it obsessive for people to weigh themselves every day.

Same with your credit score. It's good to know where you are now in order to establish a baseline. If you never have checked your FICO score, now would be a good time to do that. You can purchase your FICO score for about $16 at http://www.myFICO.com. After that, an "annual checkup" should be adequate under normal circumstances.

There are times when you may anticipate changes in your score. Perhaps you decided to opt out from a big interest rate increase by your credit card company. Perhaps you are applying for a new mortgage or you plan to finance a car. You want to monitor your credit score closely for six to eight months before that event. But do you really need to buy the real thing that often? Probably not!

Recently, I wrote about credit score estimators. MyFICO offers its free FICO Score Estimator (type "estimator" in the search box at http://www.myFICO.com). Upon your answering a few questions about your current financial situation, the estimator will give you a score range. Though not totally accurate, this range can give you an idea as to where your credit score is right now.

Another estimator is offered by Credit.com (at http://www.credit.com/calculators/score), so you should have an opportunity to compare estimates.

In addition to the estimator, our friends at Credit.com have introduced a new tool, which is also completely free, to help you better manage your credit score. Credit Report Card is different from estimators, in that it makes a "soft" inquiry into your credit file. This is the same type of inquiry that would be triggered if you ordered a free copy of your credit report. It does not go against you in any way and is not seen as an inquiry to potential lenders looking into your file.

To use the Credit Report Card, you must register at Credit.com. Then fill out the form with your specific information, including your Social Security number. Your report card will be broken down into the five areas that FICO considers: your payment history, debt usage, credit age (longevity), account mix and inquiries. You will get a letter grade from A to F in each area, with an explanation for each that will help you to understand what all of those areas mean for your big picture and what you might do to improve your score.

Once registered at Credit.com, you can get your Credit Report Card as often as you like to monitor changes and to track improvements to your score.

Paying off debt is a lot like losing weight. Both require self-control, commitment and the discipline not to "weigh in" every day!

Mary Hunt is the founder of www.DebtProofLiving.com and author of 18 books, including her latest, "Can I Pay My Credit Card Bill With a Credit Card?" You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.

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