Getting Your Free Credit Score

What is a credit score and how can you obtain a free credit score? A credit score is a system which evaluates the information in your credit report. It is used by a lender to determine whether or person qualifies for a particular credit card, loan or service.

The credit card score estimates the risk a company incurs by lending someone money or providing them with a service. The higher the score, the less risk the person represents.

To obtain a free credit score, you will have to contact all three credit report agencies: Experian; TransAmerica, and Equifax. Since credit reports can be accessed annually for free, there are some sites which charge for credit scores. However, some online sites offer free credit scores in combination with these reports, while others do not. The best advice would be to contact each separate credit report agency by mail and ask not only for the credit report, but the credit scores as well. Also keep in mind that these three agencies do not use the same methods to ascertain your credit score.

Here is some basic information as to how credit scores are determined: Lenders look at how long you’ve had credit and the status of those credit lines. If you want a higher credit score, you will have to have a long history of accounts in good standing. Too many inquiries by lenders in a short amount of time can hurt your credit score.

What you owe can have an affect on your credit score. Lenders don’t like to take risks. If you have a history of late payments, expect to see a lower credit score. It’s important to note that your credit score may be up to 50 points different from agency to agency. Typical scores are between 600 and 750, with the overall range usually falling between 350 and 850. You want the highest score you can get to secure the most favorable credit or loan.

If you wish to find a site wherein you can obtain and view your credit reports and credit scores, check online. While you may find a plethora of free credit score sites online, be sure they are legitimate and actually offer free credit scores. If not, write to the reporting agencies as suggested above and ask for your credit scores in this manner.