Credit Score For Free

Numbers have always played an important part in our lives. We have umpteen numbers to remember in our day-to-day lives like phone numbers, account numbers, license numbers, etc. Another number that plays a very important part in our lives is our credit score.

Get Free Credit Score

A credit score gives an individual’s creditworthiness based on the data that is reflected in the credit report. The credit score let lenders evaluate credit risk of a person and thus decide whether or not to grant the loan, and also upon the interest rate to be given for the loan. To arrive at the credit score, data has to be first provided to the 3 Major Credit Bureau. This data is then assigned to the variables in the credit report whereby mathematical processes calculate the credit score. The most commonly used assessment is the Fair, Isaac and Company or FICO score. Credit scores were actually kept secret from the consumers for many years, and were only available to prospective lenders sizing up prospective borrowers. However, with pressure from consumer groups, state legislatures, Congress and lending institutions, FICO has now made credit scores accessible to consumers. So nowadays, it is very easy to get your credit score through the internet, where you can check your credit score for free.

The credit score ranges between 300 and 900. It is dependant on five factors. 35% of the FICO score is dependant on your payment history; a better history gets a better credit score. 30% of the FICO score is dependant on the amount you have outstanding to creditors; the more you have, the lower is the credit score. 15% of the FICO score is dependant on your credit history; the better the credit score, the higher the score. 10% of the FICO score depends on the types of credit you have; depending on the types of credit you have, the credit score fluctuates. And finally, about 10% of the FICO score depends on any new credit you have applied for; the more accounts you open in a short span of time gives a lower credit score. The lower the credit score, the lower the chance of you availing any credit; whereas the higher the credit score, the more likelier the chance of availing credit at a low interest. If you have a low credit score, you can improve on it, but this is not an overnight process, and needs some time.