Free Annual Credit Score Facilitates To Improve Credit Mark
According to the recent amendment by the federal Fair Credit Reporting Act (F.C.R.A)
, all the three governmental organization, that is, the Equifax, Experian and the TransUnion are required to provide the consumers with the free annual credit score.
Checking your credit score is important because they enable you to find the differences in your credit position. It gives the opportunity to see that in a year how your credit is guiding principle, whether they are favorable for you or you need to change your credit strategies.
The free annual credit score also known as FICO score of the customer along with the rate gives an idea to the customer that whether he is a good creditor or bad creditor. The customer is graded according to their credit rates and the consumer is guided in view of that.
720 850 - this represents the best score range
700 719 - able to obtain favorable financing terms
675 699 - this is still a decent score range
620 674 - may have trouble obtaining favorable credit terms
560 619 - may have trouble obtaining credit
500 -5 59 - time to improve your score
The annual credit score is breached into five different measurements. These measurements have a direct bearing on your credit reputation. So it is important for the people to know that on what basis or what percentage is your credit transaction measured. It is measured based on the following categories.
Payment history -35 %
Amounts owed -30 %
Length of credit history -15 %
New credit -10 %
Types of credit used -10 %
You can also avail the credit score on the internet. You can view the credit score for free. This makes possible for you to obtain the credit report instantly. This is the best service by which the credit borrower can avail his/her score and know its position in the money market.