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

 

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...
Accepting Failure | Achieve Success
Everybody has a setback every once in a while, but it doesn’t mean that there is anything wrong with you. In fact, accepting failure can be a great opportunity to learn your own limitations and boundaries, then push through them, and provide you with a...
5 Common Ways Families Overspend
If you are looking for ways to free up extra money in your family budget, you are not alone. You may be eager to use any extra money that you can find for debt reduction, savings, or other goals. While it may seem as though there is little or no extra room to scale...
Tips for Insurance Discounts
Home insurance and automobile insurance might be must-haves, but it doesn’t have to cost you an arm and a leg to have the appropriate coverages. There are things you can do to get discounts on your homeowners insurance and automobile insurance. Here are...
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,...
Readership Programs for Children
Readership Programs for Children The summer break may not always be beneficial to children. Studies show that children lose an average of one month of learning during the time off between school years. One way to counter this is to engross them in activities that...
How The New Budget will Impact SNAP
How The New Budget will Impact SNAP  The Supplemental Nutrition Assistance Program (SNAP) assists lower-income families to purchase food in order to prevent hunger. The program also provides economic benefits to communities. The proposed budget for 2018...
Increasing Literacy in Children
Increasing Literacy in Children Literacy is important. This is a fact that cannot be stressed enough. Often, arts and literature are tossed to the side to make way for additional funding in other areas, but learning to read lays the foundation for further education...
Low Income Families and Educational Help
Low Income Families and Educational Help It is a common perception that only the most gifted students are eligible for grants and scholarships to get them through the final phases of their education, and this then gives rise to the popular thought that those residing...
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...
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...
Self Help Works Too!
Self-Help Works Too! Government assistance serves as a great safety net for a lot of people. Unemployment, SNAP, Social Security Disability, and other benefits operate as a great way to prevent total financial collapse following negative life events. However, each of...
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...
Walmart Owes Money
Wal-Mart is a nationally recognized big box store offering low prices for customers who have everyday needs. The store employs more than 1.2 million people, and many of them are currently in a situation in which they could receive a big payout from the company for...
Social Security Benefits & Retirement
Though all Americans look forward to the day when they can kick back in a lawn chair and spend time working in their flower gardens, retirement comes with many burdens. A fixed income or access to a 401(k) may not be enough to supplement the lifestyle many seniors are...
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...
Natural Healing Options for Arthritis
Arthritis comes in various forms, but it's always painful. The typical medical approach is to take some sort of pain medication (usually non-steroidal anti-inflammatory drugs, or NASDs) that might result in various side effects, such as stomach pain. Thankfully, there...
How To Get The Best Insurance Deals
In most cases finding the best insurance deals is difficult. Since having insurance is a requirement rather than being optional it is a good idea to shop around for the best insurance deals. It’s difficult to shell out the cash for insurance premiums and...
How to Manage Credit Card Payments
Do you have issues paying off credit cards? Sometimes the interest itself can be an overwhelming monthly payment. We have gathered some information below from credit experts that can hopefully help you manage your payments and find a way out from under...
Best and Worst Student Loan Services
Best and Worst Student Loan Services This is the time of year when hundreds of thousands of Americans begin to prepare for their first semester in college. They begin to seek out the items that will sustain them during dorm life. Parents spend money on new sheets, hot...

Subscribe

RSS ED News

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!

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