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Free Credit Score

A credit score is a numerical representation of how likely you are to pay your debts in a timely manner. It is calculated using a mathematical formula based on the statistical analysis of your credit report. The three digit credit score determines your credit worthiness, i.e. your ability to repay your loan. It is therefore an important statistic determining your financial future.

Credit scores are used by lenders like banks and credit card companies to anticipate the risk involved in lending to a certain customer. These business lenders use the credit score to determine the rate at which they should lend you money.

Credit Score Differences

In the United States, there are three main credit bureaus that assign credit scores based on your credit report – Equifax, TransUnion and Experian. All of these credit bureaus issue credit scores to you according to individual evaluation methods. Since these bureaus work independently they may each score you differently. The score from each bureau will be determined by the credit report information (your credit history) stored in their database to calculate the scores.

Credit Score Calculation

The most common method used for calculating credit scores is the FICO credit score, developed by Fair Isaac's Corporation. Having been pioneered by the corporation, the method is named after it. Lender's typically look at all 3 credit scores to make sure they have your most accurate credit information.
You may use this site to get all 3 credit reports, all 3 free credit scores, and all the facts about your credit report, credit report score, and credit monitoring!

Your Annual Free Credit Report

All consumers have a legal right to receive a free credit report annually from the three major credit bureaus — Equifax, Experian and TransUnion — based on the Fair Credit Reporting Act (FCRA). These can be obtained from AnnualCreditReport.com. Your free annual credit report, however, does not include any free credit scores.

Check your Credit Score Free

• Check for inaccuracies or before they could negatively affect your credit score.
• Find out why you have been denied or granted credit. The information on your credit report is the same information used by lenders concerning your credit.
• Find out who has been looking at your credit history lately. It could be credit card issuers, mortgage companies or even your employer.
• Make sure your credit report is complete and accurate before you apply for credit.
• Help protect yourself from possible credit fraud. Review your credit reports and scores carefully, any strange accounts or addresses may indicate possible fraud.