Improving Your Credit in a Down Economy
Posted by Stephen Cline on September 20th, 2010Your free credit score is your lifeline to securing any loan — large or small. From businesses to banks, more and more companies use credit scores as a form of risk assessment. A good credit score is essential if you want to be approved for a mortgage, take out an auto loan or even get basic utility services. A bad credit score can mean a potential loan will get tied up in tons of red tape and, more often than not, it can keep you from ever getting approved for that loan.
Lenders usually obtain credit scores from one of three main agencies: Equifax, Experian or Trans Union. These agencies can charge anywhere from $10 to $40 for a credit report. You can avoid those fees, however, by obtaining your free credit score through CreditReport.com.
Your free credit score is calculated based on statistical data and you earn points based on a wide spectrum of credit factors. A creditor takes all of the information on your credit report, compares it to other people with similar statistical profiles and awards you points based on factors such as outstanding debt, payment history, late payments or the age of your accounts. The total number of points in your free credit score suggests how reliable you are with credit. It opens a window into your past behavior and offers an outlook on your ability to repay a loan or make timely loan or bill payments.
Given the influence that a credit score has on your quality of life, you want to own a higher credit score. You can check in at CreditReport.com at any time to obtain a copy of your free credit score and learn some valuable insights into what you can do to improve your credit score.