How To Check Credit Score For Free

Credit scores show lenders, and whoever is checking your score how creditworthy you are. On your credit report, you’ll find a detailed history of your credit and the credit score is calculated using this information. Credit scores are a three digit number that ranges from mid-800, the highest rating to below 300, the lowest.

Not only are lenders the one who will assess you based on your score, job employers and potential landlords do too. If you want to know what your credit score is then read on to find out how to check credit score for free.

How to check credit score for free

There are several reputable websites that offer free credit report and score. You can sign-up for their free How To Check Credit Score For Freeservices but be sure to cancel your subscription once the free service is over. There are a lot of websites that offer free annual credit report and scores but some will automatically charge you if you have not cancelled your subscription after the free trial has lapsed, usually after a week or a month. Read the terms and conditions carefully and choose only those that others trust.

Government authorized

According to the FACT Act, Fair and Accurate Credit Transactions Act, everyone has the right to get a copy of their credit report. You may get yours at the government authorized website Annual Credit Report (www.annualcreditreport.com) once every year. When you request for your free copy, you will be getting one from Experian, TransUnion and Equifax, the three major credit reporting bureaus. This report allowed by government law does not include a credit score though. It can be purchased as an extra.

Credit-based rejection

The FACT Act also gives you the right to request for a free copy of your credit report and score when you have been rejected a loan or offer because of credit-based reasons. The lender should give you a copy of the credit report that they based their reasons on, be it TransUnion, Equifax or Experian.

Whichever method you choose to check your credit score, once you have it, do you know what it means? If you have a credit score of 720 and up, that means you have the highest rating and will be getting the loan no doubt. Not only that, you will also get the best possible repayment terms and interest rates. If you are looking into a major purchase, be sure that you have a credit score of 720 or higher.

The average rating falls between 621 and 719 although more specific ratings fall into this. This rating is the minimum required to get fair terms. Your rates and terms will not be as good as when having an excellent rating but should be fair enough. You could benefit financially by improving your credit score.

The lowest rating that you can get is a “risky” rating with a score of 620 and below. If you fall on this range, you’ll certainly want to get your credit score up to be approved for a loan. Even if you do get it, you’ll get very demanding rates and conditions that it will hardly be beneficial to you anymore.

3 Step Free Credit Score Check Process

Your credit score is important in getting not just loans and insurance but in landing a job too. If you want to know where you stand, there are a couple of methods to find out and a process on how to do a free credit score check.  The one authorized by the government is the Annual Credit Report website where you can get a free credit report once every year. It does not include a credit score though but you can purchase it as an extra service. You may get a free credit report from each of the credit reporting bureaus.

Free Credit Score Check Method

There are websites that will give you a free credit report and score but none of these website are approved by the government to release such information. That’s why it is safest to stick to the Annual Credit Report site.

You should know that…

There are three things you should know about your credit score. The first one is that your score from last How To Obtain Credit Score Freeweek can change the following week. New information on your credit report can make a difference on your credit score. And because you are constantly involved in credit-related activities, your score will constantly change. Credit related activities include payment on credit cards and loans. So if you have made an advance payment on your loan, your credit score will change as soon as the creditor updates this information to the credit reporting bureaus. Your credit score is only calculated whenever you or someone else requests for it so it is likely that new information will be included in the calculations on your next request. Thus, causing a change in your credit score.

The second fact that you should know about credit scores is that you do not have a single, absolute score. There are a lot of credit score models that are available to creditors and different models will give you different scores. The three major credit reporting bureaus use the FICO scoring method but even with these three bureaus, you will likely have different scores. While they all use FICO, they still adapt their own methods to the scoring system. This is the reason why it is advised to not focus on your credit score. Instead, focus on your credit report to get an idea on what score you will probably have. If you’re current on all of your loans, mortgages and credit card, you will have a good credit score no matter which credit score model is used to compute it. This leads us to the third fact that you should know about credit scores.

That is, your credit score is only as good as your credit report. Because despite the fact that your credit score will be different all the time, the one used to compute the score, the information on your credit report, will always be the same. One single error on your credit report will affect your score.

So more than your credit score, focus on your credit report. Make sure that all information in it is correct and that do everything that you can to keep it up.

More Free Credit Report and Score Options

Free credit report and score offers are available on countless websites all over the internet but there are only four websites recognized by the US government to obtain your credit reports. These websites are annualcreditreport.com and the official websites of the three credit reporting bureaus namely TransUnion, Equifax and Experian. Here are other things you should know.

How to get free credit report and score?

When visiting the above mentioned sites, you will be asked for a few verification questions and then you will free credit report and scorehave access to your credit report instantly. There is no free credit report and score service available on any of these websites. Credit scores can be purchased for roughly $10. You can get a free credit report once every twelve months from each of the credit bureaus, other than that it has to be purchased unless you have been denied credit. Then, you have the legal right to another copy.

Do I need a free credit report and score

You need to check your credit report once a year for any discrepancies and detect identity theft. You will also want to check it months before you intend to apply for a loan, mortgage or any form of credit to see where you stand. If you are looking for a job, it will also be helpful to see how accurate your credit report is.

How important is my credit report and score

A good credit report and score is essential to saving you a significant amount of money and securing opportunities such as a loan or a job. Your credit report and score is used by lending companies and insurance companies as a basis for determining your risk factor. With it they can either reject your application or increase your monthly premiums. Employers often check a job applicant’s credit report to see how financially responsible you are, also.

But I don’t have a credit history

Even if you think you don’t have a credit history, make sure that it is so by getting the free credit report and score from the official websites. A student loan and a bank account will appear in your report and is considered part of your credit history. If in fact you have no credit history in your report, you can start building it by opening a bank account and applying for a credit card. Store credit cards will also help. But, you can afford to pay in cash? Keep your credit card active by using it and paying it in full at the end of every month. That way you are creating a good credit history but not paying interest rates.

Safely Acquiring Your 3 Credit Reports and Scores

The 3 credit reports and scores are available to consumers at the three credit reporting agencies: TransUnion, Equifax and Experian as well as the only government authorized website, annualcreditreport.com. Getting all 3 credit reports and scores can be had at $39.95 both from Experian and Equifax or $29.95 from Equifax for the credit reports alone without the scores. If you don’t want to pay, you can use your one free credit report from the mentioned government authorized website every year but this does not come with a credit score. You can get all 3 credit reports for free but there’s a fee associated with getting all 3 credit reports and scores.

Do I really have to pay for 3 credit reports and scores?

Do you really have to pay $15 for a score? Not really. Sure, credit scores are used by creditors to see how 3 credit reports and scoresmuch of a financial risk you are. It even determines whether you’ll be approved or declined for a loan and the amount of interest you’ll paying but acquiring your credit report should give you an idea of your credit worthiness.

You obviously have a bad score when you have a few late payments, have filed for bankruptcy or have other delinquencies. A credit report on the other hand that gets a good score is one with a good and long credit history with a bank or credit card company, and no late payments.

An instance when you don’t have to pay for the 3 credit reports and scores is when you have been rejected from a loan, credit or mortgage based on your credit report and score. Together with the rejection letter or better known as an adverse action letter is an explanation why you have been declined what you applied for including your credit score. Another option they will give you is a claim offer from the credit reporting bureau where the credit report and score was obtained. So even if you have already claimed your free credit reports, you can still get a copy of your credit report if you have been declined. The same is true if the lender decides to give you terms other than what you applied for.

So you don’t necessarily have to pay to get all 3 credit reports and scores. Getting your free credit report every twelve months is good enough if you are simply monitoring your records for any inaccuracies. The only instance where you would want to pay for the 3 credit reports and scores is when applying for a mortgage or loan so you can see where you stand.