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

 

Social Security Disability Benefits
Sometimes in life, events occur that prevent people from working in order to make a living. Accidents occur and illness strikes at the most inopportune moments. The Social Security Administration may be able to help. They provide disability benefits to...
Car Loans Approved Today!
Drivers will be excited to hear that the cost of a vehicle has started a downward plunge making it even easier to get the car loans you have always wanted. According to predictions by GasBuddy, the average price for a gallon of gasoline is set to fall...
Morning Habits for Success
Are you a morning person? Many people enjoy getting up at the sunrise and having a cup of coffee while they browse the web and others prefer to sleep in as long as possible but the most successful people in the world embrace the mornings and in fact there are certain...
Health Insurance Coverage Changes | ACHA
Healthcare reform tends to be tricky and complex as it attempts to find a common ground that is beneficial for all people. Burdened by the political firestorms that surround it, the new healthcare bill approved by the House of Representatives will...
Relief Resources and Benefits Gov
 Let's begin with this. No One Is Guaranteed Government Assistance Just For Existing. That being said, Government aid can be very helpful to those enduring a financial struggle or hardship. It can also be beneficial for those looking to attain a higher...
How to Save Money on Your Kids Dental Bills
Your family budget might not extend as far as it used to. Still, you want your children to have healthy teeth and inexpensive kids dental bills. Learn how to save money on your kids dental.  Like Clean Teeth? Try the Dollar Brush!   Courtesy of Fox News Health...
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...
Easy Formula for Grant Applications
When you look forward to apply for a government grant, you will need to do a lot of research and make elaborate preparations. To give a kick start to your grant seeking process, fist you must understand the different types of grants available. You will...
A VA Home Loan Can Help You Get Affordable Housing
 Ever since the housing market collapse, lenders have tightened the requirements to qualify for loans. If you don't have the required credit score or enough for a 20 percent down payment, it will be difficult to secure qualification for a conventional...
How To Get Involved with Affiliate Marketing or Direct Sales
How To Get Involved with Affiliate Marketing or Direct Sales Life can busy and complicated. With increased costs in childcare, one parent must often stay at home to watch the kids while the other parent works. Or, as someone begins their adulthood, they may need...
Disability Lawyers | Filing SSA Claims
According to the Social Security Administration, an average of 52% of applicants is rejected yearly. This only shows that the government is very serious in paying only those who deserve these benefits. So, it is important that social security disability...
Searching for Online and Freelance Employment
Searching for Online & Freelance Employment Many career fields and skills do not fall under traditional frameworks for employment. Writers, photographers, marketers, teachers and artists may be able to find work as online freelancers to continue improving their...
Helping Homelessness with Government Grants
 Poverty and homelessness in the United States and around the world is increasing on a daily basis. Here in the United States, rising housing costs and lower livable wages have been among the 2 biggest contributing factors. Lack of mental health facilities...
Examine Failures and Find Inspiration
How to Examine Failures and Use it as Inspiration Sometimes, when we fail, it can feel like the end of the world. None of us like to be told that we are doing something wrong. None of us like to experience setbacks in our plans. It can make us question our self-worth,...
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...
Social Security Disability Benefit Application Help
 There are several advantages to applying for Social Security Benefits online. There is no need for an appointment and it will definitely save you time. Visitng your local Social Security Office can be very time consuming and frustrating. Read the...
Five Great Resources for Working from Home
 There have been thousands of people watching “Good Morning America” who have sent us messages thanking us for helping them make the money while working from home. For anyone who hasn’t yet taken the leap forward but feel as though you might be ready,...
Car Shopping and Ways To Pay for It
A franchised new car dealership is a reliable, if not the only, source for anyone who wants to buy a new car.  But to those who prefer buying used or previously owned cars, there are plenty of options and sources one could choose from to be able to make...
HARP Eligibility and Assistance
 If your mortgage is making your financial life more difficult than you expected, you can get assistance through a program called HARP (Home Affordable Refinance Program). HARP eligibility is easy to determine as there are several factors that can affect...
Is Public Housing An Option for You?
The US Department of Housing and Urban Development (HUD) utilizes several programs to ensure housing for lower-income families. One of these programs is Public Housing. This program was designed to provide decent and safe rental homes for lower-income...

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 Name and Email for Best Results

Due to the overwhelming response, enter your email for best results. Look for your free ebooks from New Flex Career!

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!

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