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Free Credit Report and Score - Why You Need Them Both

Tip! Closing unused accounts is a negative strategy to raising one’s credit score. Factually, fewer open accounts with the same amount of debt ultimately reduces a credit score.

You keep a record of how much money is in your checking account. Chances are, you keep a running tally in the back of your check book and you balance that with the statement the bank sends you each month. As important as it is to know how much money you have available before you write a check, it is equally important to know your credit score and what is on your credit report. Not knowing these things could cost you money.

A credit score helps predict how credit worthy you are

Many factors go into determining your credit score including your bill-paying history, the number of credit accounts you have, late payments, collection actions, and outstanding debt. Once this information is compiled, statisticians compare your information with other consumers and give you points for each factor of your history that shows you to be a good credit risk. Your total number of points are added up, giving you your credit score.

Tip! The key to finding a lender, who specializes in low credit score refinance loans is to do your research. The power of the internet cannot be underestimated, when it comes to shopping for a poor credit refinance lender.

A credit report shows how credit worthy you have been

Simply put, a credit report is a tracking of all of your credit purchases and payments compiled by a credit bureau and made available to any agency that is trying to determine whether or not to give you a line of credit or loan you money. The report lists every account you have open, even if it contains a zero balance. Information published on the report stays on it for 7 to 10 years.

Tip! Pay off debts to improve credit scores.

Everyone should know their credit score and have a copy of their credit report

If you are getting ready to apply for a home loan, you should know what is on your credit report before your lender ever sees it. If there is an inaccuracy, you will have a chance to have it fixed, so it won’t spoil your chance of getting the loan. Having your report in hand will also give you a chance to close any old accounts that you no longer use. Having too many open accounts can influence the amount of credit you are eligible for to receive.

Tip! Make frequent payments. Credit scores maintain a record of how often or late a person remits payment.

Everyone is entitled to a free credit report

The law requires each of the three credit bureaus to provide you with a free credit report each year. You may take them all at once or spread them out, but it is important to obtain them and make sure that the information of your credit report is accurate.

View our recommended sources for a credit report agency. Also, view our recommended debt reduction services online, or view our list of recommended lenders for low rate mortgage companies online.

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This entry was posted on Saturday, September 20th, 2008 at 11:30 pm and is filed under Credit Scoring. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

One Response to “Free Credit Report and Score - Why You Need Them Both”

  1. Credit Crunch » Free Credit Report and Score - Why You Need Them Both Says:
    September 21st, 2008 at 12:34 am

    […] Denied.com | Credit Scores | Credit Reports | Apply for Credit wrote an interesting post today onHere’s a quick excerptTip! Closing unused accounts is a negative strategy to raising one’s credit score. Factually, fewer open accounts with the same amount of debt ultimately reduces a credit score. You keep a record of how much money is in your checking account. Chances are, you keep a running tally in the back of your check book and you balance that with the statement the bank sends you each month. As important as it is to know how much money you have available before you write a check, it is equally important to […]