keeping an eye on your credit score is very essential these days as many of the big banks and institutions that give out loans are getting more strict during these recessionary times so you really have to make sure that your FICO score is high enough for you to get qualified to receive a loan or to be able to use your credit card for short-term transactions. The best way to keep an eye on your credit needs to get your yearly free copy of credit report.

Getting a credit report for use to cost around $10 but that was before the government passed a law that says that you are entitled to one free copy of credit report each year from the three major credit agencies which are Equifax, Transunion and Experian. The best place to receive a free copy of your credit report is to go online and requested at one of the many online credit report websites, but when you are doing this make sure that you are not asked to give any credit card or billing information because if you are, then you will most likely be discreetly billed for your credit report without you even knowing about it.

Many people these days really need to get a home modification loan on their mortgages and when they finally meet with their mortgage broker they get the bad news that their FICO score is 50 points lower this year then the last, and you’re wondering why this has happened since you have never been late on any payment at all throughout the last 5 years. It turned out that you really haven’t been much of credit customer lately and this could have been one of the contributing factors involved in the demise of you credit score.

I remember applying for my first home loan many years back and even though I had enough money for the down payment on my house if my credit score was just 15 points lower than where it was at the time, I wouldn’t have qualified for that home loan.