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Five Important Facts That You Should Know About Free Credit Score Report | free credit score report

A free credit score report is a tool that most people have come to rely on in the modern economy. It can help a consumer keep track of his or her financial health and in some cases help them predict what lies ahead. Yet, most consumers don't know what it is or how to get one. The following guide details how they can get one and how to use it to their advantage.

There are several different places from where consumers can get a free credit score report. The three most popular are the three main credit reporting bureaus: Equifax, Experian and TransUnion. There are also a few independent agencies that offer them but these are generally regarded as inferior to the big three. All of these services offer different services and it is important that consumers understand which ones are most appropriate for their needs.

As with anything else in life, good financial health is a result of good decisions. The better your credit score is, the more likely you are to be able to borrow money and secure financing. The other obvious benefit is that you are seen as less of a financial risk. If you have a high score, you will be seen as less of a credit risk and lenders will be willing to offer you lower interest rates. This all adds up to a very positive financial outlook.

The first of the vantagescore reports that must be obtained is the FICO score. This is a calculation developed by Fair Isaac that determines your credit utilization or repayment history. The number that is produced is a calculation based on your payment history, debt ratio and length of time in credit. It is widely accepted that a relatively low FICO score has negative implications. A credit score that is high could mean that you have used your credit too much while a low FICO score could mean that you have not. These vantagescore reports can range from a few hundred to about one thousand.

Once you have obtained your vantagescore report, the next step is to evaluate it for accuracy. You can do this by requesting your FICO vantagescore and using the three credit report scoring models available. Each model works differently and provides different results, but they all come with a basic outline of how to read the report and interpret the results.

The most commonly used credit score model is called the FICO scoring model. This model looks at your payment history and the types of accounts that you have maintained. It then calculates your credit utilization ratio, which is your average amount of time you spend on revolving credit versus the amount of time you pay off your balance. This calculation tells the credit report score that you have less than ideal payment history. This then gives the credit report a negative outlook for your credit scores if your payment history is too low or you have too much debt.

However, there are other factors that can cause your FICO scores to be calculated inaccurately. For example, some credit reporting companies make errors when they calculate payment status for a loan. Your payment status will either be paid on time or delinquent. If your payment status is not reported as paid on time, you will have a negative impact on your credit score. Conversely, if your payment status is reported as delinquent, your FICO score will give an erroneous impression of you being a high risk borrower.

Some lenders also consider the level of open lines of credit you have vs. how long the accounts are active. Lenders want to know how likely you are to settle your accounts quickly vs. taking them on for years. Also, the length of your loan vs. the number of payments you have made affects your FICO scores. Lenders are more willing to approve loans for borrowers with higher FICO scores. This means that people with shorter payment histories also have better chances of getting approved for mortgages and car loans. So the next time you are shopping for loans, take a look at your credit scores first!


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