How to get Free Credit Report and Free Credit Score

In banking domain, credit score of borrower has huge importance. The borrower’s credit score determines the approval of loan by the financial organization. Also the amount to be borrowed and the rate of interest are also important factors that are evaluated for loan approval. So, most of the borrowers are searching for genuine as well as free credit score and hence free credit report.

Free Credit Report and Free Credit Score

Credit scores are maintained by few credit bureaus which are private organizations and keep track record of credit history of individual. Today, Equifax, TransUnion, Experian, etc. are leading credit bureaus. Each of these credit bureaus provides free credit report annually. However, one can consult with his financial mentor and get familiar with the importance of free credit report and free credit score.

The free credit score is commonly popular by the name of FICO score. The exact formula to calculate FICO score is not published in public. But, people commonly assume that FiCO range is from 300 to 850. Here, 300 are the worst credit score and 850 is the best. Your FICO score is shown in your free credit report. Credit score is grades given to your credit history. People having late payment of credit, missed payment or loan defaulter will have low FICO score. Bankruptcy is also a reason behind lowering of credit score. It is very risky to approve loan to a person having low credit score. Creditors can deny the approval of loan if the person’s credit history is not impressive i.e. low credit score. On the other side creditors prefer to approve loan to a customer who have good credit history or high credit score. A borrower with high credit score can get additional benefits like lower interest rates as well as higher credit limit.

As we know bank uses credit score for approval of loans to customers. But importance of FICO score is not limited to only financial institution. Landlords frequently evaluate the credit score of the person before giving his property on rent. Some recruiters evaluate the credit scores of the candidate to judge his/her character. Insurance companies calculate the monthly premium of the customer from his/her FICO score. Some utility companies also utilize the credit score of customers in the business. 

From all these applications of credit scores in various areas, it has become very important parameter in the business and so more and more people are looking for free credit score and hence requesting for free credit report to credit bureaus. If you don’t know the credit score then you can get your free credit report just by an email or phone call to credit bureaus. The free credit report is prepared by credit expert of credit bureau based on credit score of the person and credit history. The free credit report is available annually and everyone must take advantage of this opportunity by requesting for free credit report and he/she will get free credit score. 

To get the loan one should have good credit score and if he don’t have good credit history then it is very difficult to get the approval to loan. In this case one should consult the credit expert to know the alternative way. It is possible in some cases to get loan or credit even you have bad credit history, in this case role of credit expert is very important. In some cases, you experience the burden of bad credit due to over spending of money due to natural causes like medical emergency. In this case you can get credit if you take proper advice from credit expert. 

Credit expert is the person having good knowledge of credit and banking affairs. He is an experienced person who can give proper advice about credit options even you have bad credit.

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