Free Credit Scores

Checking your credit score is a good way to start any borrowing ventures you might have in mind. The question is, how do you go about doing this and where can you get the information you need regarding your credit information?

There are three main credit companies in the USA: Equifax, TransUnion and Experian. They all use the Fair Isaac Corporation or FICO credit score model to calculate your credit score based on credit reports. These credit reports may be obtained online at www.annualcreditreport.com. Here, you can avail of a free credit report each year from each of the three mentioned companies. Other credit companies will give you personal credit reports, but you have to pay to get them.

The formula used to compute your credit score depends on the credit company, as there is no standard basis for calculations. Your credit score may be different according to which credit company issued the report. Also, your score may not be the only factor involved in a lender's decision to approve or deny a request. If you want to trial-test calculating your credit score by yourself, you can go to www.myfico.com and sign up for a free program. There are also some bank and finance websites that offer systems where you can freely generate an estimate of your credit score.