According to conventional definition, a credit score refers to a numerical expression, which represents the person’s credit worthiness. A credit score is generally based on a credit report that’s obtained from the major credit bureaus. According to the US Faire Credit Reporting Act, a person can get a free copy of their credit report from the major credit bureaus, namely” TransUnion, Equifax and Experian. The credit report is provided at no cost, and can be requested every 12 months. Here’s how to gain your credit score.
Collect All The Require Information
Before getting a free credit report, first obtain all your account numbers and loan statements, since the credit reporting bureaus may ask that you provide the account numbers and payment amounts, to validate your identity. A credit score is often generated by tracking data from a person’s credit report, into software which analyzes it, and releases a number afterwards. The three major credit bureaus do not necessary use the same system, and use different names for it, therefore it should not come as a surprise if the scores the churn out are a bit different.
Go To annualcreditreport.com
Next, go to annualcreditreport.com, which is the only authorized Web site of the FTC. From here, you can link to the three major credit bureaus. Credit experts however frown on going to sites like the Free Credit Report, because despite their name, they actually charge monthly fees for their credit monitoring service. Once you’re in the site, choose your state from the pull-down menu, and start filling your information.
Ask For Credit Reports From The 3 Major Credit Bureaus
The next step would be to request for credit report from the 3 major credit bureaus, since you won’t be charged with any fees. However, because you’re only allowed one company per year, order them on a staggered basis throughout the year instead.
Print Your Credit Report
Once you request your credit report, print it out once it appears, because the major credit bureaus won’t send them to you via email. Look for links on the first page of the Web site, which allows you to print the report. While getting a credit report usually comes at no extra cost, these companies are allowed to advertise other paid services, such as a credit monitoring service, which goes for a small monthly fee.
A person’s credit score ranges from 500 and 850, and this scale numerically defines a person’s credit worthiness. The credit score is valued, and analyzed by banks, credit unions and other financial institutions, as well as by employers, mortgage companies, and even by your landlord. Once you obtain your credit score, make sure you regularly track your credit by signing-up for a free online credit report.
A free online credit report helps you quickly find out whether there’s an error or inconsistency in your credit history, so that you can immediately have those errors erased or corrected, and you’ll have a much easier time dealing with potential lenders.