Introduction
A credit score is one the best ways a lender can utilize to determine the creditworthiness of a borrower. It is often generated by a computer program which will read through your credit reports and come up with a number based on the data stored at credit bureaus. Therefore, it only makes sense to monitor your credit score every once in a while, especially if you plan on applying for a loan sometime in the future. Here are some resources you can use to obtain a free check credit.
Step 1
Sources of Free Credit Scores
There are certain methods you could use to obtain a free check credit to determine your creditworthiness. These include Fair Isaac Company (FICO). This is by far the most trusted and widely-used credit score by lending institutions. FICO scores range from 300-850. The higher your score is, the better your chances at getting a loan. Its computation is arrived at by using data that can be grouped into five sub-categories: your payment history, amounts owed, length of credit history, new credit and types of credit used. You can get a free credit score from the Fair Isaac Company directly.
Step 2
Promotional Websites
There are certain websites which can provide you with a free check credit on a trial membership. The trial membership will allow you to check up on your credit score for a set period, after which you will have to pay to continue using the service. You should be careful when selecting a promotional free credit score website, so as to keep your personal data safe and to avoid a lot of spam mail in the future.
Step 3
Credit Scores from Lenders
It is possible to request for a free check credit from your lender. All you need to do is to ask for a credit score during the application process for a loan. On top of that, lenders are required by law to provide borrowers with more information about their credit rating in the event they are denied a loan or charged higher rates due to their credit score. If you were to apply for credit check from a lender, you may receive a free credit check notice from the lender with information about your credit score or credit report. The purpose of these notices is to allow you to verify the accuracy of the information used by a lender. These notices include:
Tips
Credit Reports after a Loan Application
Once you apply for credit, you will receive a Credit Check Score Notice stating your credit score and how it compares to other consumers.
Denial of Credit: If a lender rejects your application for credit based on your credit score, you will receive an Adverse Action Notice.
Receive credit on less favorable terms: If you provided with less favorable terms on your credit, you will receive a Risk Based Pricing Notice.
Sources and Citations
Establishing your check credit score plays a vital role in determining you chances of success at approval for a loan. If you find that score does not match up to your lenders standards, then you should work toward improving it.
