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 services 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.
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.
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.