The value of a free credit score is the same for you as it is for a creditor. It gives you a
quick and simple way to know the strength of your credit. And because it's based on statistics,
you don't have to guess or rely on someone's opinion. Getting your free credit score
also allows you to see if your credit needs improvement, whether it's a little or a lot.
Your free credit score is a single number that comes from a formula which rates different
elements in your credit report. The elements were chosen on the basis of how accurately they
predict if a person will pay his bills. Such things as your bill-paying history, the number and
type of your accounts, and how long you've had your accounts are rated with the formula.
The significance of your free credit score comes from the statistical analysis of
hundreds of thousands of comparable credit reports. Your score can precisely tell you or a
creditor, how good your credit is. And this objective view of your credit is one of the reasons
that scoring formulas were first used and why they've become so widespread. With the passage
of various anti-discrimination laws, the ability to rate a person's credit without bias, became
a necessity.
One of the anti-discrimination laws passed, the Equal Credit Opportunity Act, describes
the things that can't be considered when judging a person's credit. And so your free credit
score won't be affected by your sex, race, marital status, national origin or your religion.
Your age may be used as a factor only if it's to give context to other factors and can't
automatically discriminate against the elderly.
To improve your free credit score, consider any weakness in the following areas:
- Your bill-paying record: If you're behind on any payments, bringing them up to date
should raise your score.
- How close you are to your credit limits: If you're near a credit limit, usually you can
raise your score by paying down the account.
- How long you've had credit: If you haven't had credit for very long, only time will improve
your free credit score for this factor.
- New account activity: Applying for several accounts can result in a sudden increase in
debt or multiple denials, either of which will lower your score. Always seek new credit
gradually.
- Your credit account types: It's best to have more than one type of credit and to avoid
lower grade credit, such as finance company loans, which are often scored negatively.
To get your free credit score, free credit report and free 30 days of credit monitoring,
please go to
free instant credit reports.
