Getting A Free Credit Score

by

 You have a legal right to know how you rate. The Fair Credit Reporting Act (FCRA) allows all American consumers to get a credit report every year at no cost.[1] The law is designed to help all consumers combat the dangers of identity theft and credit card fraud, as well as abusive practices that some companies have adopted in the past. Unfortunately, surveys have revealed that up to 60% of Americans don’t know this critical piece of information.[2] If you’re one of them, it’s time to change that!

Get Your Free Credit Score Today!

 

The Difference Between Score and Report

If you’re going to look for information about your financial standing, you should know what you need. If you want a collection of raw information or data about loans and other transactions in the past year, you should look for your credit report. If you want to know your standing with lenders and financial companies, you will need a free credit score. Your score determines whether or not you can get a new loan or almost any type of financial assistance. The figure is a rating of how likely you are to meet your financial obligations, based on your personal history.

 

What Does Your Score Mean?

Bureaus use these criteria to determine and rate your level of financial responsibility:

35% – Track Record and Payment History
A summary of your efforts to pay off loans, and whether or not you can pay them on time.

30% – Total Amount Owed
When you add up all your debts, how much do you owe? If your existing debts are close to your limit, then you have a slimmer chance of getting a new one approved.

15% – Tenure
Have you borrowed money before or is this your first time? Your tenure in borrowing money is also considered to test how good you are at juggling multiple loans and avoiding penalties from late payments.

10% – Amount Of New Debt
Lending companies will also look at your most recent loans, specifically, those you have made within the past year.

10% – Debt Types
Bureaus review the types of loans you have. Do you have a home loan and an auto loan? Do you own more than one credit card?

When you put all these together, you come up with a comprehensive view of your abilities as a borrower, and whether or not you can earn the trust of lenders.

 

Your score will fall into one of these categories:

750-850: Excellent

650-749: Good

629-649: Fair

350-610: Poor

These are the numbers used by lenders and finance companies to determine the likelihood that you will default on a loan.

 

Where Can You View Your Free Credit Score?

You can get free credit reports at the annual credit report site. You are entitled to one free report a year from the three major bureaus: Experian, Equifax, and TransUnion. A potential lender might use any one of them, so it’s best to check all three each year.

Your report is not infallible. According to the Federal Trade Commission (FTC), 5% of Americans have potentially damaging errors in their report.[3] That’s why you need to check all three: you don’t know which one a potential lender will use, and any one of them could have a mistake. Review the reports carefully, and watch out for accounts or transactions that don’t belong to you, or late payments you know you made on time.

To correct an error on your report, you will need to submit a dispute letter to the bureau in question. There’s a sample dispute letter here. You will have to include all the evidence required to reverse your record. For example, if your report claims that you made a late payment, you should be able to present a payment receipt with the correct payment date. Make several copies of these important documents and keep all the original files. Be sure to keep records of all transactions!

As soon as you’ve submitted your corrections, the bureau has 45 days to get back to you with a resolution and a new rating.

You should also monitor your FICO score, which is used to determine the success rate of mortgage loans, car loans, and card approvals. The FICO score gathers reports from the top 3 financial bureaus, making it the most reliable source of lending criteria and information. Tracking your FICO score is also one of the best ways to thwart identity theft and fraud. Ideally, you should check your FICO score every quarter of the year.

Independent websites, notably Credit Karma, offer user-friendly packages that let you view credit scores and reports at any time, along with alerts that help you spot identity theft and loan offers tailored to your credit score.

 

 

How to Improve Your Score

If you have a poor rating and are worried about your chances of getting a loan, you should investigate the ways you can improve your score. Remember that your score does not determine whether or not your loan is approved; it is only a metric used by companies to have a better read on your abilities as a borrower.

Improving your financial standing is not always easy. You will need to get your house in order, reduce your debt, make every payment on time, and be as responsible a borrower as you can be. Of course, all of these are good things to be in any case, so there is extra motivation! This article gives a more detailed outline of steps you can take to improve your score. Short term installment loans for bad credit can start repairing your credit history.

Your credit score is important, and the first step to improving it is knowing what it is. Learning how you rate and keeping track of your standing are key steps toward building a responsible financial future. The reports are free; all you have to do is ask… so get them today, review them carefully, and take control of your financial life!

“Fair Credit Reporting Act” . FTC.gov
“LendingTree Survey Finds Nearly 60% of Americans Don’t Know Their Credit Scores” . PRNewsWire.com
“Five Percent of Consumers Had Errors on Their Credit Reports” . FTC.gov

 

Are Discount Stores Really A Bargain?
It seems like dollar stores and other various discount stores are becoming a common retailer in most areas. Can these discount stores really offer you a bargain or do they just sell poor quality items? In my opinion, there are plenty of great bargains to be found in...
Free Cell Phones: Avoid The Trap
Cell phones are becoming very sophisticated with the advancement in the technology. Today the cell phones come with lot of mind-boggling kinds of features on them. Due to the increasing competition between the handset manufacturers and the service providers, lots of...
5 Strategies to Reduce Stress and Strengthen Family Relationships
 Stress is everywhere. You feel stressed at work and on your commute, and maybe even your home, the place that is supposed to be your sanctuary. When you arrive home from your job, you're met by bills that need to be paid, children that need to be fed and...
Lifeline Assistance Program
 There is now a program out there that can even help with your cell phone. The special government program called Lifeline Assistance that offers a free phone and minutes to those who qualify. Getting on the list is not very hard, but there are a few things...
5 Helpful Resources for Women Who are Expecting
If you are living paycheck to paycheck or struggling to make ends meet, a pregnancy can put a lot of extra stress on you and your family. Luckily, there are single mom resources available to help you if you need some assistance. These programs provide benefits such as...
Things You Need to Know About Section 8 Assistance
Things You Need to Know About Section 8 Housing Some families might find a safe, decent and affordable housing as a big challenge to tackle. Majority of regions in the United States do not have rent control laws in place. Therefore some renters find affording a...
Ways to Face Fears | Succeed
All of us have a hard time with failure, and it can often lead us to feeling insecure about ourselves. It can even begin to compound our fears and leave us feeling nervous and anxious in unfamiliar situations. We want to be able to predict and control everything that...
The Facts You Need to Know About Payday Cash Advances
If you need money, it can feel as if there is no one to help you. It may feel like you're up a creek without a paddle. Luckily, you can get payday cash advances to help you out. Research all companies that you are considering. Find a lender that fits you...
How Do You Repair Your Credit Score?
How Do You Repair Your Credit Score? You may be bombarded with ads for businesses telling you they can help fix your credit. Many companies say they have some kind of proven method for improving your credit score. However, you should first follow this advice and see...
Which Student Loan Repayment Options Work for You?
Which Student Loan Repayment Options Work for You? The student loan process can be tricky and difficult to understand. Students often overlook the process from the beginning of college until graduation, never realizing the impact of the loans until payment become due...
How A Home Warranty Will Save You Money
A Home Warranty Will Save You Money Owning a home can be expensive. Appliances break down, and air conditioners tend to quit working in the middle of the summer. In fact, most home have a major mechanical breakdown twice each year. Usually, these breakdowns occur at...
Run A Background Check When Applying for Jobs!
 Social media is everywhere in the air around us today. Hence it is natural for you to assume you can handpick and choose what you want your employees to see. Most people therefore imagine that once they clean up their Facebook wall and delete those...
Unexpected Pregnancy Resources
 If the event that you know a low-income family who is experiencing an unexpected pregnancy, you may want to reach out to help. During this time, you can feel overwhelmed and not know what steps to take. But know that you can take on a supportive role in...
Applying and Making Phone Calls to Potential Employers
Applying and Making Phone Calls to Potential Employers Applying to Places Not Hiring: A Wise Move or Not? Are you in desperate need of a job? If you are currently unemployed or if you truly think that your current job is making you “crazy,” you may be due for a new...
Inexpensive Public School Alternatives
Sending kids to the public school a few blocks away is a simple task for some families. However, not all parents wish to follow this route. They may have concerns about the safety of the public school in the neighborhood, or they may want a different type of education...
Best Way to Build Your Credit Rating
In today’s world, credit can be easily destroyed. If you are young and entering the adult world, you may not always understand how to maintain a great credit rating. Often, you do not qualify for a loan or credit card due to having no credit. Lapses in employment or...
History of St Patrick’s Day
 St. Patrick’s Day is celebrated annually on March 17, the anniversary of his death in the fifth century. The Irish have observed this day as a religious holiday for over 1,000 years. On St. Patrick’s Day, which falls during the Christian season of Lent,...
Natural Antibiotics and Antivirals
The issues of antibiotics and antibiotic-resistant bacteria have gotten a lot of attention lately. The concern is that bacteria, having been exposed to antibiotics for so long, have developed a resistance to the antibiotics, creating "superbugs." The grim reality is...
Which Protection Is Best?
Keep Your Information Safe! Makes A Great Christmas Present! Credit card numbers are sacred these days. We’d never give them out to a stranger because credit card fraud and stolen identities are never more than one mistake away. But what if I told you that somebody...
Penny Pinching Groceries Plus Earning While Shopping
Penny Pinching your way into savings and earning! If you feel like you are wasting money on groceries then you're not alone. The average American spends around $160 per week at the supermarket. What if I told you that number can be easily cut in half by penny pinching...

The Premier Forex League

Subscribe

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Pin It on Pinterest

Share This