If you have already requested for your free annual credit report from the government authorized website Annual Credit Report or requested for your copy through mail or over the phone, you are wondering where to get a free credit score government authorized. Unfortunately, the FACT Act does not include a free credit score, it only entitles consumers to a free credit report. Credit scores can be purchased at $14.95 with the report at any of the major credit reporting bureaus. You can choose to get it from the official websites of Experian, Equifax or TransUnion.
Free credit score government
There are several websites that give out free credit report and score but none are acknowledged by the government. If you decide to proceed with this, make sure that you only deal with a well reputed website. There are cases of people getting charged a full year’s worth of service because they did not cancel their free subscription. What some websites do is give out a free trial for a week, sometimes a month and when the subscriber has not cancelled the subscription, they will automatically charge the person’s credit card. So ask around or research which websites deliver free credit reports and scores.
Once you have your credit score, whether you paid for it at the government authorized website or through a free service, what then? What is a good score and what is a bad score?
Good score, bad score
If you have a score above 720, congratulate yourself. You have done an amazing job in keeping an excellent rating. This is the best possible rating one could get. It is also the rating where you can get the best interest rates and payment terms from lenders.
If you have a score of 620 or below, it is time for you to work on getting that credit score up. This score will give you the highest interest rates and the most unfavorable terms with lenders. If they even grant you that loan, in the first place.
A score in between the highest and the lowest rating will give you fair conditions with lending companies. The closer you are to 720, the lower the interest rates are and the closer you are to 620, the higher those rates will be.
What’s in a score?
If you have a low score and wish to improve it or a high credit score and wish to maintain it then you should know how scores are computed. The biggest factor in calculating a credit score is the payment history. It constitutes a big 35% of the overall score. What goes into payments history is how prompt you are in paying bills. Late payments and bankruptcies can bring this score down.
Your outstanding debt makes up 30% of your credit score. The amount that you owe in car or home loans and how much of your credit card’s credit limit you have accumulated all go into this.
15% goes into the duration of your credit and 10% each for new credit and the types of credit that you have. All this make up for your credit score.