A credit score is based on a thorough analysis of one’s credit files and an assessment of the data through numerical interpretation. A credit score reveals whether a person is creditworthy or not. The score is generally based on the information that is typically derived from the credit bureaus.
Money lenders such as banks generally use credit records in order to evaluate the possible potential that can be posed if money is lent to a person. Free credit score tends to determine the clients who qualify for a loan and what the interest rate should be to be implemented on the person. The limit to credit is also determined by credit records. There are many ways to get your credit score.
Get more information about credit report and score.
The clients likely to fetch most of the revenue are also determined using the credit score. The credit score is actually a score of identification which can be possibly used prior to any kind of access to authorization. Apart from the banks, several other companies prefer free credit score from the Government. A credit score can be achieved from any of the three most important credit bureaus namely the Equifax, Experian and the TransUnion. While calculating one’s credit score the income of the individual is not considered by the bureaus.
There are various ways the free credit score is calculated. The most commonly known type of credit score is FICO. It is widely accepted and is generated by the Fair Isaacs Corporation. The report generated by FICO is largely accepted by the majority of money lending organizations in order to determine the risks involved in sanctioning the loans to the individuals who might possess some financial obligations.
Credit scores vary from one credit bureau to another. The Equifax’s score is known as the Score Power whereas the score generated from the Experian is the PLUS score. Apart from these, major money lending organizations including various credit card companies have unique proprietary models to score the records.
In order to ensure that every individual of the nation is treated fairly, the Government entitles the U.S. customers to an annual free credit report. This free credit score from the government has been made available all over the nation. Initially it was mandatory for the people to pay a fee and obtain the credit reports in the past. Various agencies undergoing credit reports have put themselves together to build a website where one can possibly avail and access a free credit report.
The site from which an individual can access the free credit score from the government is annualcreditreport.com. Alternatively you can use annualcreditreport.gov or freecreditscore.gov websites which will redirect you to http://www.ftc.gov/freereports and will give you the same information. One can log in to the website and request for a free credit score. Besides accessing online, the customers can simply call at 877-322-8228 and request for their annual free report of credit score.
However, there are several other organizations from which one can avail credit scores. These organizations actually charge a fee to generate credit reports. The “Annual Free Credit Score” is the only free credit score from the government which is mandated by the FCRA and can be conveniently accessed over the phone and the website without any requirement of a payment.