Hello and Happy New Year

Check your credit score and make sure you start the new year right. Because once you know your credit score you can take the necessary steps to improve it.

*Order your free credit reports.
Checking your credit reportsperiodically is a good way to protect yourself against identity theft.It will also alert you to errors that could hurt your credit score.

You’re entitled to one free credit report every 12 months from the three main credit-reporting agencies, Experian, Equifax and TransUnion.To request your free credit reports, go to www.annualcreditreport.com.

Don’t be misled by similar-sounding websites that claim to offer “free”credit reports. They’re usually a backdoor effort to sell you a credit-monitoring service or other product.

You can order all three credit reports at the same time or order a different one every four months. The advantage to the latter strategy is that you can track changes in your credit report over the year, creating your own credit-monitoring service.

This strategy only works, however, if you remember to order a report every four months, says Bridget Smithof Lending Tree, an online company that helps consumers shop for loans.If you’re not very organized, you’re better off ordering all your reports at the same time, she says.

You can order your credit reports online or through the mail. To have them mailed to you, call877-322-8228. You’ll need to answer some questions to verify your identity.

You’ll have to pay an extra fee — usually about $8– to get your credit score, but it’s worth the cost, Smith says.Lenders use your credit score to determine the likelihood you’ll repay your loans. If you have a low credit score, you may be turned down fora car loan or a mortgage, or charged a higher interest rate. Once you know your score, you can start taking steps to improve it.

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