subject: Free Credit Score - Drastically Improve Yours in 12 Months [print this page] Free Credit Score - Drastically Improve Yours in 12 Months
A credit score is fundamentally the life history of your finances and helps in deciding how credit worthy you are.
This score is used in the decision process of whether you qualify for credit, loans, charge cards or utilities as it serves as an indication of the likelihood of you paying your debts fittingly.
Your score is also factored in when determining your credit limit and the interest rate of credit you are approved for.
Increasingly more landlords and employers are accessing credit scores as a method of establishing if people are responsible with their money.
In the United States every resident is permitted by law to get a copy of their credit score free of charge once every 12 months.
The 3 key credit bureaus; Experian, Equifax and TransUnion use somewhat different algorithms in arriving at your credit score hence you may have a variety of scores at every of the 3 bureaus. As a result of these different scoring models it's important to be aware of your score from every of the three credit bureaus.
General Makeup of a Credit Score
Typically a credit score is determined by considering the following:
35% payment history. Tardy payment of bills such as your mortgage, credit cards and auto loans may lower your score. Making your payments on time will over time advance your score.
30% is set from credit utilization. This indicates the amount of credit limit being used compared with the amount of credit limit still available. Your credit score will improve if you pay off some debt which will lower your utilization ratio.
15% credit history length. As the age of your credit history increases your score will increase assuming you are paying your debts as agreed.
10% based on variety of credit used. You can help advance your score by using a mixture of credit forms such as consumer finance, installment and revolving.
10% Numerous credit applications. Making multiple credit applications or inquiries in a relatively short period of time may negatively affect your credit score. If at all possible make your credit inquiries over a longer period of time.
Credit Score Range
Your credit score (FICO score) may be somewhere between 300 and 850. Approximately 60% of scores on average are in the 650 to 799 range. 723 is the median score.
Top Reasons to acquire Your Credit Score on a Regular Basis.
To arrange for consumer purchases to be made in the near future
If you are searching for a mortgage or to decrease your existing interest payments
So the next time you make a vehicle purchase you can be sure to obtain the lowest possible interest rate.
To prepare yourself for any feedback you could receive from a potential new employer/landlord who will likely look into your score.
To insure it's right.
To guard yourself from identity theft and or fraud.
Getting your credit score is worth taking seriously as the reasons listed above are significant aspects of a person's life.
Now that the internet is so widely available obtaining your credit score has become faster and easier than ever. This procedure will help determine your credit worthiness, your credit history, your credit potential and for your protection will help guarantee the information contained on your report is correct.
To immediately get your credit report simply fill in your key personal info like address, name, social security number and date of birth and then hit "submit".
Downloading your credit score is free and easy to do, leaving you no reason not to get yours today.
