Annual Credit Report

Find Information on How to Get Your Free Annual Credit Report and Credit Score.

Sample Consumer Credit Report

What is Credit Score

Every consumer should be aware of the importance of regularly checking and updating their credit report, since this will impact your credit status.

In today's modern world, an individual's financial status is one of the most vital aspect of human existence. Therefore, it is highly important to learn how to manage your finances well enough and manage to stay out of debt. A person's credit score is one of the most vital pieces of information needed to accurately assess one's financial status.

How Does Credit Score Work

A credit score is a simple three-digit number that basically summarizes your financial capacity and history. It is one of the most basic information used by creditors to determine whether you are a reliable enough person for them to give a loan to, or whether you can buy a new car or house with it. Since there are several variables involved in understanding a person's credit status, this number representation will easily enable lenders to assess whether you are a risk to the company or not.

Nothing about this is exaggerated at all. Thus, it is very important for a person to learn about their credit score, understand how it is calculated, and work on improving credit score to make your financial rating desirable since you'll never know when it might come in handy.

Computing Your Credit Score

You can check credit score online. Before you go deep into the actual process of Check credit report score, it is important to look into the formula used for computation first. The Fair Isaac Company is the one responsible for developing this concept of coming up with a credit score, which is aptly called FICO Score. This method of computing has been utilized by the top 3 credit agencies - Equifax, TransUnion, and Experian - since the 1980s. Before, this number was hidden from consumers but given the importance of this knowledge, it was therefore made known to the person involved. After all, knowing how bad your credit rating is will inspire you to do something to make it better.

The process of computation works just like obtaining your average grade in school, which follows a cumulative process. All of your individual scores in quizzes, oral presentation, homework, and exams are totalled in order to reach an average score. Only this time, it utilizes different factors to reach the intended score.

The formula is determined based on the following factors and their corresponding percentage:

*35 percent on your payment history;
*30 percent on outstanding debts;
*15 percent on length of your debts;
*10 percent on newly opened credits;
*10 percent on the type of credits applied for.

You can check credit report score using the formula, Each of the above listed factors will impact the calculation of your credit score in either the negative or positive way. Over the time though, the three major credit bureaus have also come up with their own unique method of computing, which is still largely based on the formula used on the FICO Score.

Now that you understand how your credit score is computed, you need to work on improving it. It begins with reviewing your credit report for any errors in order to make the necessary corrections immediately. Also, you have to maintain your credit balance such that it does not reach 25 percent from the allowable limit.

Source: Free Articles from ArticlesFactory.com

Next page: My Free Anual Credit Report Equifax


Bookmark/Share This Page:

ADD TO DEL.ICIO.US ADD TO DIGG ADD TO FURL ADD TO NEWSVINE ADD TO NETSCAPE ADD TO REDDIT ADD TO STUMBLEUPON ADD TO TECHNORATI FAVORITES ADD TO SQUIDOO ADD TO WINDOWS LIVE ADD TO YAHOO MYWEB ADD TO ASK ADD TO GOOGLE ADD TO MAGNOLIA ADD TO NING ADD TO RAWSUGAR ADD TO SPURL ADD TO TAGTOOGA

  Bookmark and Share

Recommended Products

Get The Debt Help You Need

First Choice Capital Resources - offers a fast, secure, and private way to borrow the Cash you need! Borrow Cash now and have ample time to pay it back.

Get up to $5,000 to use in any manner you like
60 second Cash approval
Great repayment terms
Bankruptcy and poor credit OK
Fast, secure and confidential

Getting the cash and credit you need has never been easier. Fill out one simple online profile and we will match you with multiple lenders. No lines, no hassles and no paperwork! Click here to Sign Up Now.

Credit ENHANCEMENT

Receive Full-Service Credit Enhancement

Start getting your credit back to where it should be by monitoring and managing negative items that may be unjustly counting against you on your credit report. We recommend a company called Riverwalk Credit Solutions to help you correct inaccurate credit items and get your score as high as possible.

Get immediate access to your credit profile, quickly analyze your credit items, and instantly begin disputing the errors and inaccurate items on your credit report.

  • A full-service credit enhancement program for a low, affordable price.
  • Fully compliant with all Federal regulations, including the FCRA and CROA.
  • Improve the accuracy of your credit reports at all 3 major Credit Bureaus.
  • It's easy - we're here to help you every step of the way.
  • Begin your Credit Enhancement now. It takes just minutes to get started.

Click here to fill out the form on the next page and a credit specialist will contact you to discuss your