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

 

Is Rent to Own Housing An Option?
Rent to own housing is a popular term that should be carefully considered. It can be an agreement between owner and seller to rent or lease a property until it is paid in full. The plan can work several different ways, some have zero deposits and no...
Home Improvement Grants
 Is your home desperate for repairs? Are you at your financial limits, broke...flat broke? Have you ever wondered how it would feel to have the government help you be able to afford these critical repairs? Help is possible through new home improvement...
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...
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...
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...
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 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...
4 Most Challenging Discussions You Can Have With Family (And How To Have Them)
It's not always easy to practice open and honest communication, especially with your family. Unfortunately, that lack of communication can have serious consequences. If you're having a hard time finding the courage to approach your family about an issue you're...
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...
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...
Modern Millionaires Mindset
Here’s A Modern Millionaire Rhetorical Question:   If you have a spare million dollars in your bank account today… How will you spend it? Pay off all your bills and loans? Buy your dream car? Dream house? Give your family a better life? Travel all...
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...
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...
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...
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,...
How to Find Bargains at Flea Markets
I love to spend hours looking at flea markets for different items. Different vendors set up their products in a central location so that consumers can spend their time walking around and see the new and used items available for sale. You never know what you will come...
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...
Receiving $4000 in Home Rebates
 Are there any home improvements that you have been contemplating lately? Are you struggling to make ends meet already? Learn more about three Programs a that could help you and millions of homeowners qualify for a $4,000 rebate. These Are Very Tough...
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...
Best Credit Cards for Questionable Credit
Life does not always work out as planned. Sometimes, a gap in employment leads to a few missed payments, and eviction, or a repossessed vehicle. These things happen to most people. In order build credit back up, a credit card may help. Making regular...

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