Why Do I Need A Free Credit Score?
You need a free credit
score in order to review and potentially improve your credit status.
According to some consumer reports, up to 29 percent of all credit reports
include factual errors. By periodically checking your credit score, you can
dispute any mistaken claims and thereby improve your credit score and gain
greater credit limits, lower interest rates and annual fees, and other
credit-related benefits.
Consumer access to
credit scores is a fairly new process. In 2001, the U.S. Congress helped to
create a body of laws protecting consumer rights and access to all credit
information. Previous to these landmark proceedings, only lenders and other
creditors were privy to consumers' credit scores. It was argued that
consumers did not need access to their scores because they lacked the
information necessary to accurately read it. This is no longer the case, as
there are numerous references available to help consumers correctly
interpret their credit scores.
You can gain access to
a free credit score simply by applying for a loan or other type of credit.
If you are not ready to negotiate terms with a bank or credit company, there
are a multitude of online resources dedicated to educating consumers on
their credit status. Often for a small fee, you can gain a detailed report
on your credit history and score.
There are numerous
credit score systems in use today. The credit score most commonly referred
to is the FICO, or Fair Isaac Corporation. Typically, a credit score is
calculated using a set of pre-determined variables. Most credit scores refer
to several broad categories of financial history: payment history,
outstanding debt, dates of approved credit, credit report inquiries and
types of credit in possession. Visit Privacy Matterssm to request your
free credit score.
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