How to get your free credit scores
Usually the credit scores have to be paid for separately. The credit reports are provided for free by the three credit reporting agencies as per the FCRA. These credit reports depict the payment histories of consumers including the debts cleared, credit card dues, late fines and penalties, default reports and various other finance related details. These credit reports can be availed every year from each of these three bureaus. Usually most people opt for three separate reports, every 4 months, from each of these bureaus. There are online offers where the free credit scores can be availed. Sometimes the credit reporting agencies also send free credit scores along with the free credit reports.
Credit scores and your creditworthinessCredit scores are the basis on which lenders evaluate your paying capacity. Credit scores are numbers which range from 300 to 850. These numbers are used to portray the creditworthiness of debtors and borrowers. The credit scores of 590 and below are usually considered to be poor credit scores. The scores from 699 onwards are considered to be good credit scores. Poor credit scores reflect the lack of repaying capacity of debtors. While good credit scores show that the borrower can repay loans and debts on time. Poor creditworthiness will result in getting loans and other financial tools from banks and lenders, but on their terms and conditions which are usually very high interest rates.
Check your credit scores to avoid high interest loansAll borrowers who are planning to apply for loans or mortgages should check their credit score before applying. This is essential because poor credit scores will result in very high interest loans or mortgages for them. But with good credit scores low interest loans can be easily availed. There are various ways of improving your credit score and the same should be implemented. This will result in financial gains in the long run, especially if the loan is a long term one like a home loan.
Check your credit scores for errorsOnce you get your free credit score it is also essential to check the same with your credit report and will minimize the chances of errors. Often paid or cleared debts are not corrected on credit reports and result in poor credit scores. By checking these errors the chances of risks can be minimized. The check of credit score will also help you to be in better control of your finances.
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