FREE CREDIT SCORE: How to Check My Free Credit Score (+Best Free Credit Score Sources)

Free Credit Score
Image Credit: VectorStock

Do you know that in today’s banking world, the decision to offer you a loan or grant you a credit card depends on You? Your credit score base on information in your credit report determines it. This numerical rating provides an easy way to assess your risk of defaulting on a loan. Little wonder why consumers always seek to find out their score. In this article, you will learn more about free credit score, check, report, Equifax, and Experian credit score.

What Is a Credit Score?

A credit score is a three-digit number, calculated using a credit report, that reflects the statistical likelihood you’ll fail to repay a debt. It is also known as a credit rating number between 300 and 850 calculated base on several factors, such as your payment history, credit inquiries, credit usage, length of credit history, and any new credit you have. Lenders like banks and credit card companies will look at your credit history when they calculate your credit score.

This shows lenders the level of risk in lending to you. Therefore, the higher your credit score, the better your chances of being accepted for credit, at best rates. Equally, a lower score means that you may be denied or, will have to pay more in interest. Your credit score is extremely important in your financial life.

free credit score
Image Credit: CNBC(Free Credit Score)

This is why monitoring your credit score is so important. Knowing your score strengthens you when it comes to applying for credit. Moreover, it helps keep you in check. But how do you monitor your score?

In addition, Lenders use credit scores to evaluate the creditworthiness of an applicant. You can also get your credit score for free from credit monitoring websites. Most credit card companies also provide cardholders with their credit scores.

Top Sites for Free Credit Scores

There is a growing number of credit card issuers that offer free credit scores as a way to entice new customers. Here are a few listed below. Kindly Click on the links underscore for more information on how they operate

Read Also: Best mortgage lenders: 2022 picks updated (+ detailed guide)

How does a credit score work?

Your credit score is calculated whenever you apply for credit, such as a loan, credit card, mortgage, or even a mobile phone contract. Besides your score works depend on the company you’re applying to.

Lenders look at your borrowing history and how you typically repay the money you’ve borrowed. Usually. Similarly, they also use credit scores to help determine the interest rates they charge. Typically they charge higher interest rates to borrowers with lower credit scores.

Difference between a credit score and a credit report

A credit score is different from a credit report. A credit report is the transcript of your history of borrowing and repaying debts, while your credit score is a grade-point average that sums up that history. They are also closely interrelated, and both reflect your actions. So, if you can manage debt and have good credit habits, It will reflect on your credit report and your credit scores will increase.

Additionally, despite that, the score is gotten from the report, they are still different but connected. Therefore both can be used by lenders to decide whether or not to grant you credit.

Tips to Increase Your Credit Score

I believe you’ve fully understood credit scores. You can as well improve on them. Here are the best ways to increase your credit score perfectly.

#1. Pay off your debts on time

This is one of the most vital aspects from a lender’s view. It enables him to see how you’ll possibly be paying your bills. Always influence credit scoring by paying bills when due because Lenders don’t want to see that you owe other creditors lots of money.

#2. Your credit card balances should be low

Another factor that can impact your credit score is your credit utilization ratio. Thus, this ratio is often calculated by adding all of your credit card balances and dividing that amount by your total credit limit.

#3.Avoid applying for new credit

Requesting a new credit card would increase your overall credit limit. Having many inquiries can equally affect your credit score. Hard checks might remain on your credit report for a year or more.

#4. Do not unnecessarily open new credit accounts

Generally having mortgage credit cards is not ideal. However, if you have more credit account, there will be more inquiries against your credit report.  If you have too many inquiries and very few accounts, your score gradually drops.

#5. Ensure to fix any credit reporting errors

These errors can negatively impact your credit scoring. Definitely, a credit score above 740 is very encouraging. Lenders see borrowers above this amount as being dependable. Therefore, If your score above 800, and you will be taken as one of the best with minimal risk to mortgage lenders.

Free Credit Score Report

Checking your credit score is different from checking your credit report. The free credit score report provides a history of your financial life, including the accounts you have, how often you’ve been able to pay. The report also includes the dates of any changes to your credit history. You can use this history to account for and report any discrepancies connected with various settlements.

If you sign up with the following free services, you’ll get a wide view of your credit report score with each of the major credit bureaus. Combining Credit Karma or WalletHub’s free TransUnion credit reports with those from AnnualCreditReport.com, trust me! you’ll be in a better position to catch identity theft.

Free Credit Score Check

It’s ideal to regularly check your credit reports to ensure that the information is complete and accurate.

To get an insight into what products you may qualify for and what interest rates you are expecting, it’s important to know your score before applying. Also, ensure that you inculcate the habit of checking it regularly. It is the best way you can improve your credit.

Importantly, you can check your credit score for free in less than five minutes by logging into your credit card issuer’s site. Typically, there’s a dashboard listing your score and some factors that influence it. Similarly, every 12months you can also check your credit score free from each of the credit bureaus by visiting www.annualcreditreport.com

Experian Free Credit Score

Experian do not make negative or otherwise judgments about the information in your credit report. The list of negative items is provided as a service to direct your attention to what they think lenders are likely to consider when reviewing your credit history. For instance if you missed any payments in the past, your potential lenders are likely to view this as a sign of risk.

The Experian Free Credit Score ranges from 0-999. However, It is base on information in your Experian Credit Reports such as how often you apply for credit, your depts, and the strength of timely returns. You might also lose points for having records on poor reports such as defaults and late payments to companies. With Experian boost, you can as well increase your credit scores for free.

Free Credit Score Equifax

Your credit scores are calculated using information in your credit reports, but aren’t part of the credit reports themselves. You don’t have only one credit score; there are many different credit scoring models, or ways to calculate credit scores. Credit scores are designed to represent your credit risk, or the likelihood you will pay your bills on time.


Steps to Get Equifax Free Credit Scores

  • Create my Equifax account and click “Get my free credit score
  • Buy credit scores directly from one of the three nationwide credit bureaus or another provider.
  • Use a credit score service or free credit scoring site.
  • Check your credit card, financial institution 

Related Articles:

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  2. BAD CREDIT: Definitions, Examples & Penalties
  3. Personal loan application: Step by step guide (+ quick tips)
  4. Financial Literacy Tests to Track your Progress Efficiently(+ quick guide and tips)

Conclusion

Your credit score is one of the most important things that can increase your finances. Before applying for a loan, this number tells more about your creditworthiness. The higher your score, the more likely chance you’ll be approved. It is also a very good chance that you’ll end up paying at a lower interest rate.

Using a Proactive steps is a good way of managing your credit report is a better way to control your finances.

Disclaimer!

This article is solely for information purposes. The writer has no holdings in any of the companies mentioned in this article and will not be liable on any decision acted upon. Consult your financial institution or an expert for more clearification.

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