When was the last time you checked your credit score? Hopefully your answer to that question fell within the last month or two. If not, take a moment to consider these important points about your credit score and how important it is to your overall financial wellbeing.

Years ago, the credit score was something that could not be seen – a mysterious numerical decider that either worked in your favor to help you get something you needed (like a house or a car) or worked against you to prevent you from either getting a loan or getting a loan with a decent interest rate. Today, things are quite different, with the advent of the Internet being the primary reason. These days you can easily view your credit report and credit score online for a small fee. In some cases, you can even access this information for free when you sign up for a credit monitoring service or a new credit card. Credit monitoring services also charge a fee, but could make sense if you plan on checking your credit score and credit report regularly (something I would encourage everyone to stay on top of). One advantage of knowing your credit score and watching your credit report is that you will catch identity theft immediately, thereby preventing some thief from making off with too much of your hard earned cash or reputation.

While it is almost impossible to have a perfect credit score, understanding your score and what is impacting it will help you gauge the likelihood of being approved for a loan and will help you to realize the importance of paying your bills on time.