I advocate monitoring your credit report and credit score on a regular basis to track your score and check for errors. You can pay for this service from any number of providers, but I like to use CreditKarma.com. They give a pretty decent approximation of your credit score and the best part is that it’s free!
I logged in yesterday to check my score and it has fallen a whopping 100 points since the last time that I checked! Did I go on a spending spree? Nope but two things did change since the last time that I checked my score. One was that I added a new credit card which dropped the average age of my credit cards from 7 years down to 4 years. That’s not what affected my score so much though. The biggest cause for the drop is the tax judgment that I mentioned before from fighting against the state which now appears on my report. So, my credit score fell from almost 800 points down to just about 700 points.
Should I be worried? Probably. If I try to get a loan to pay of that damn lien, I might be rejected or if approved, the rate will be horrific. I’ll have to address this soon than later but I thought that I would share.
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