Free Credit Check and Free Credit Score
Your free credit score and free credit check is a snapshot of your credit history at a particular moment in time.
However, in reality that information is flowing in and out of your credit report all the time. Credit applications, home and auto loans, payments, an address change or even an inquiry from a prospective creditor all show up on your credit report and affect your credit score.
Your free credit check and credit score is calculated based on the information in your credit report. Free Credit checks allow lenders to quickly make on-the-spot credit decisions based on a 3-digit number that sums up your credit worthiness. There are many credit scoring models in use today; all are designed to rate your likelihood to repay your debts. When you order your free credit check and credit score online, you will also receive your current credit report free as well as an analysis of the factors affecting your score.
Credit history is the main determining factor of credit nowadays, but there are potential problems that can work against consumers. Since some credit reports can contain inaccuracies serious enough to cause consumers to be denied credit, a loan or even a job, keeping abreast of changes to your credit file is vitally important.
Identity theft is also on the rise, now the number one consumer complaint reported on your credit report. Monitoring your credit report with a periodic credit check is one of the easiest and most effective ways of protecting your credit against errors and fraud.
90% of the largest banks use your FICO score for credit decisions.
Your free credit check includes a FICO score and is a key factor used to determine the mortgage rate, auto loan rate or credit card terms you are offered.
A 100 point difference in your FICO score could mean over $25,000 extra in interest payments over the life of a 30 year mortgage on a $300,000 home loan.
More than one credit score
In general, when people talk about "your score", they're talking about your current FICO score. However, there is no one credit score used to make decisions about you. This is true because:
Credit bureau scores are not the only scores used.
Many lenders use their own credit scores, which often will include the FICO score as well as other information about you.
FICO scores are not the only credit bureau scores.
There are other credit bureau scores, although FICO scores are by far the most commonly used. Other credit bureau scores may evaluate your credit report differently than FICO scores, and in some cases a higher score may mean more risk, not less risk as with FICO scores.
Your credit score may be different at each of the main credit reporting agencies.
The FICO score from each credit reporting agency considers only the data in your credit report at that agency. If your current scores from the credit reporting agencies are different, it's probably because the information those agencies have on you differs.
Your FICO score changes over time.
As your data changes at the credit reporting agency, so will any new credit score based on your credit report. So your FICO score from a month ago is probably not the same score a lender would get from the credit reporting agency today.
CreditReport.com is a leader in providing free credit checks and free credit scores in a secure online environment.
Order your free credit check and free credit score today! Try our credit monitoring service for 7 days free with obligation. You can cancel at any time. We are confident you'll find it to be a valuable tool for protecting your credit, as millions of others have.
You may also choose to instantly view your 3-in-1 merged credit reports from the three national credit bureaus: Experian, Equifax and TransUnion.
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