Your FICO credit score is only a 3 digit number but it can have a huge impact on life if you do not pay attention to it. Your FICO score can change several times a month as new information about your credit card, auto loan, and home loan payments gets added to your 3 credit reports – Experian, Equifax, Transunion.
Having a FICO score of 750 instead of 650 can save you over $40,000 in interest on a home loan over 30 years. Can you see how important it is to pay attention to your score?
So the question you are asking now is where can I get my FICO credit score for free? The one place you can go to is MyFICO.com the creator of the FICO score.
For a limited time you can access your FICO score absolutely free on MyFICO.com. Of course you will have to enter your credit card information, provide your Social Security number and answer some questions from your credit report before you get access but it is free.
You will be signing up for a 10 day trial of Score Watch, a $14.95 a month credit score monitoring membership that you can cancel within the 10 day period and not be billed again. You can login into your MyFICO.com account and quickly cancel the trial period. But you still get your FICO credit score for free.
Then you can know how banks, auto and home lenders, and credit card companies will determine your personal lines of credit, mortgage rates, car and credit card rates. The better your FICO score the lower your interest rates. The lower your FICO scores the higher your interest rates.
You can check your FICO score for free and see how much work you need to do to increase your score until you need to apply for a loan, credit card, or even a job or insurance.
Now you know the answer to the question, “where can I get my FICO credit score for free?“
What is a credit score? This query is vital to the creditor and also to the borrower since it is the basis of their action on the loan under process. It is summarized in numbers about the credit history of the borrower to handle the repayment of the loan you are seeking. The direct question of whether the borrower will pay at the agreed period is the common denominator of this credit score scale.
In basic terms, a credit score indicates the likelihood that you will repay money you borrow on time.
Truth is, the universally accepted method of analyzing the credit reliability of customers propagated by FICO (Fair Isaac and Company) utilized as its design purpose is the projection of the probability that the customer will fail in his obligation after 90 days or on the next 24 months after the score has been calculated. Using the FICO method as utilized by the three US credit bureaus, it utilizes 700-850 as good credit score range and a score of 300 as its lowest and up to 850 as its peak.
So if you have a good FICO credit score of 740, the risk of you defaulting on your credit obligations is very low so lenders will gladly approve your loan application.
On the other hand, if you have a bad FICO credit score of 580, you pose a higher risk to the lender and they will likely not approve your credit card application. And if they do, your APR will easily be over 20%.
There are several credit reporting firms that give free credit score calculator on the Internet that would help the credit applicant to be apprised how to be rated with the information they could give in replying to some questions. They would understand how to fix their credit score and its substance in the application for loan. This credit score calculator would lead them to secure a copy of their credit report and credit score from the 3 credit bureaus, which were extensively prepared from existing credit documents supplied to them.
In the credit score, the loan applicant would be informed on what is a good credit score and what is the highest credit score range. He would discover how vital is the proper handling of a good credit rating is and credit score meaning if he is given an extremely poor grade. He must formulate steps how to increase credit score to have his credit application passed and at affordable interest rates. It would not be favorable for his business to secure loan with strict conditions and high interest provisions. It would add to the problem loads of his operations as his revenue is constantly being pruned by the high interest charges as a result of a poor credit rating.
Now you know what is a credit score and why it is important when you want to borrow money.
A good credit score is always the desire of any loan or credit applicant. This credit score scale is the determining factor in the approval of the loan as well as the interest that will be charged to it. There are numerous methods of credit score rating and businesses are not constrained to avail other types at concluding what is a good credit score range for their customers. There are many factors that are considered in determining a credit score of a client. These cover the history of his payments, the amortization on the loan, the length of his credit history, types of the loan and new loan if any. If you wish to apply for a loan, the initial action that you must perform is a review of what is a credit score and determine your situation.
If you determined that the credit score calculator is not favoring you, begin all applicable options to fix your credit score prior to filing your loan application. Because this is the only solution to avail a loan and at affordable interest rates, you must find steps how to increase credit score. There are many ways to increase your credit score scale. One approach is by paying up to date all your obligations, verify errors incurred by lenders and have them reconciled, negotiate some loans, and make updated payments of utilities. Carry out some studies regarding credit score meaning as you come to be informed how creditors analyze their client’s credit worthiness using the FICO method of concluding the credit performance of their clients. In the process of your learning, you will discover that the FICO method of the highest credit score scale of 850 is all about.
However, you do not need a perfect credit score of 850 to get approved for a favorable rate auto loan. As long as you are on the 670 and above credit score scale you should be fine.
The FICO credit score scale runs from 300 to 850. 670 and above is considered good credit, 669 and below is average and poor credit.
In America, there are three credit bureaus that are using FICO credit scoring formulas, which approach is standardized and it is universally-accepted as a tool in the analysis of credit performance. These companies are Experian, TransUnion and Equifax. While the three have been adopting FICO in their credit rating approaches, they have launched collaboratively an alternative method to FICO, branded as VantageScore which is cheaper and its credit score rating is higher than FICO. There are differences in the methods of the two, but FICO is still widely patronized in the market.
You do not know which score your lender will pull when they run your credit so that is why it is important to check all 3 and see where you land on each credit score scale.
It is important for you to get your credit report regularly. The government can help you to know all the information needed in order for you to have the best credit. They will give you free credit report every year for you to know what is going on with your borrowing. Get your 3 annual credit reports at http://www.annualcreditreport.com/
This is the government’s way for you to know if your credit is safe against those people who are trying to steal your identity from you. Your credit report will serve as your baseline data in order to determine the capabilities and effectiveness of your finances. This will entitle you to have a fair treatment when applying for a loan, credit card, job or insurance.
You should also know that in order to determine your credit score, you need to know your credit report. You cannot get free credit scores from the government just yet, only free credit reports from the government annually.
Getting copies of your credit report will allow you to know all the transactions that have transpired in your past dealings. You should consider yourself lucky in having a free annual credit report, because in the past, people would have to pay just to have their credit reports. Nowadays, it is a strong move of the government to offer free credit reports all across the country.
For you to get your credit report, you need to contact the three major credit bureaus in order to help you have it. In return, they will provide it to you in order to help you to know the latest development with your credit history. This is the most effective and efficient way on how you can obtain your annual credit report. Moreover, this is a great way for you to have the accurate credit report. You should know that your credit report will vary with different companies because they have different methods of assessing our credit report.
Once you get a hold of these things, you can know your credit report completely. Your credit report is your ultimate guide for other companies to have financial dealings with you. Once you have a clean track record of your business, many companies will look forward in doing business with you.
These days, in order for a certain company to flourish, they need to have good credit score, and upon having it; they should know first if their credit reports are worthy. Truly, having a free yearly credit report will allow you to maintain your business; efficiency in every single way.
Credit worthiness is one of your most important sources of funds when doing business – borrowing money to buy a car, buying or refinancing a house, obtaining a credit card of line line of credit. So you need to know what is a good credit score.
But, it could contribute to your big interest expense if you are rated as a high-risk client. It is important that you are aware of your credit score rating. If you believe that you are not within a good credit score range to be able to enjoy lower interest rates, it is time to act on how to increase credit score and win some points that would decrease your interest rates subsequently.
The issue, what is a good credit score must be one of the direction of the finance department to preserve the image of the company and become the leading torch in the application for new credit.
On the other hand, using credit reliability as a guide in making decision of providing credit to your clients is basically the same essence. A good credit score scale is normally your barometer in granting loans or credit limits. There are several methods used in determining and analyzing a credit score. In the United States, the most commonly used method is the one introduced by Fair Isaac and Company known as FICO. It provided a new method with the distinctive bearing of a credit score calculator where one will come up with a credit score for each client using the software.
A vivid knowledge of a credit score meaning is similarly a result of utilizing FICO method. You will come to understand the meaning of what is the highest credit score range of 850 in the FICO method. Referring to the FICO credit score range of 300 to 850, it conveys that the lower the scale, the higher the risk you will be encountering and a higher grade signifies the lowered risk of turning your credit bad.
A good credit score starts at 700 by the FICO scoring method and there are several factors to be noted before you will savor the amount of the loan you are applying for with lower rate of interest than compared if your credit rating is under that ideal scope. If you have a credit score below than the good level, immediately fix credit score at the earliest time possible.
To sum up you need a FICO credit score of at least 700 and above to be considered a good credit score.
What is the highest credit score range one would get at a given time? This is the question that is most repeated by numerous people who keep on asking. Before filing an applicaiton for loan, several of them wish to know their credit score scale.
They are interested in how their application for credit would not be approved. Yes, they can secure the answer in a few minutes after they have satisfied the questions. There are now many credit score calculators offered for free which users may instantly access on the Internet and know their credit score rating. The credit score calculators differ on the software being used to aid the applicant-to-be or just anyone who is interested to know his credit score scale.
These credit score scale are directions to a full understanding about the value of a good credit score range and its outcome on the application for a loan. Anyone who would be analyzing his own credit score would appreciate what is a good credit score range. The other query what is a credit score would also be fully known by him and try his best to maintain the credit score meaning.
Make sure to fix credit score first before negotiating for a loan, if you are one of these customers that are rated below the average credit score rating by FICO that was utilized by the three U.S. credit bureaus namely; Experian, TransUnion and Equifax. Work out to know how to increase credit score and execute them in proper time prior to applying any loan as you will be meeting some hardships in availing the credit as well as the component high interest rate.
There are several things that you have to execute to have an immediate fix of your credit score by doing the following.
1. Get a copy of your credit report.
2. Design a budget to meet your total outstanding obligations.
3. Analyze every entry on your credit report and make reconciliation of accounts with your creditors regarding incorrect entries and request for an adjustment.
4. Settle your outstanding accounts timely that includes utilities payables.
5. Maintain old credit cards and avoid using your credit lines if necessary.
Do not forget not to apply for a new credit until you are assured that your rating by the credit score calculator which you consulted previously would give you a higher grade now.