How Do I Get Free Credit Scores?

Like it or not, your credit score affects almost every facet of your life. You have to present your credit score – and report, too, for that matter – when you are applying for a job, looking for an apartment, securing loans for your car and home, and even availing of insurance. This is because your credit score is a reflection of your financial management skills, your financial status and credit risk.

Credit Bureaus

At present, there are three major credit reporting agencies/bureaus – Equifax, TransUnion and Experian. These credit bureaus gather personal credit information and calculate the scores using a common formula (FICO), said information of which is then sold to the many institutions who require credit scores. Of course, these credit scores are then utilized to determine suitability for employment, credit and insurance, among other legal uses.

Although the credit bureaus will come up with different scores because of the differences in weights assigned to the factors of computation, you will basically have the same qualitative ratings of low, medium and high risk. In figures, scores can range from 300 to 800 points with around 690 as the average score for Americans.

Credit Scores

With that being said, you will ask how to get free scores. Under a new law, you can secure one free credit report from the three major credit bureaus for every 12 months. Now, that is one way of getting your score for free but we know that you will need to secure scores on other times of the year.

So, where can you get your free scores at other times of the year? Well, there are many online sites that provide you with this service. However, you must beware as the scores are often not as accurate, as reliable and as acceptable to the entities that ask for it.

The better option is to go to the official sites of the credit bureaus instead. For example, Equifax is offering a 30-day free trial but you will be charged the regular rates after said period has expired. FICO also provides for a 30-day free trial, after which the annual fee of $90 will be charged when you do not cancel your membership.

Clean Credit Reports

But more than the need for free credit reports, the more important thing is that your report is clean. That is, there are no errors on it that can adversely affect your credit scores.

There are two main ways to go about cleaning your credit report of any errors, if indeed there are any that you can find. First, you should write to the credit agency informing them of the errors committed and the proof you have about said errors attached to the letter. Second, you can write to the information provider/creditor about the errors you want corrected on your credit report. Again, attach proof of your claims.

Just remember that when contesting the errors that any and all negative but correct information on your credit report as it affects your credit score will stay as is for up to 7 years. Now, that is one thing that you want to avoid so pay your bills and debts promptly.

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