Free Credit Report -vs- Free Credit Score

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Most people believe that their credit report is the most important document to keep an eye on. Well..Yes and No. Sure, it’s an important first step to perform, i.e. getting your free annual credit report. BUT HERE’S THE UGLY TRUTH: When it comes time to get that auto loan or mortgage loan, most lenders will go straight to your credit SCORES and NOT your credit reports. Your credit report only provides the raw data that goes into figuring out what your score is.Your lenders may or may not even bother taking the time to peruse through your credit report to see what factors affected your scores

BUT HERE’S THE PROBLEM:
Annualcreditreport does NOT provide your credit scores! You have to purchase them individually from the 3 major credit bureaus in order to see them.Your scores do NOT come free with your annual credit report.

But once again, it’s your SCORES that ultimately determine whether or not you’re considered creditworthy for that loan you’ve applied for. It also sets your loan interest rates for mortgage loans, auto loans, personal loans, etc. The better your score, the lower your loan interest rates and monthly payments. So it’s vital to check both your free annual credit report AND credit scores. With the former, you can perform a credit check once an year from annualcreditreport.com. For the latter, there are various free credit score programs that you can utilize.

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So, once again, how do I get my 3 credit reports and scores for free?

Getting your free credit reports from all 3 credit bureaus is your right by law. Through annualcreditreport.com you can view your free annual credit report once per year. As a consumer, it is your right to request and view your credit reports fore free once a year. But if you’re interested in seeing your credit files more than once per year, you’ll have to pay for this. You will also have to pay for your credit SCORES since these are NOT included with your annual credit report for free. But as mentioned before, there’s always free credit score programs you can utilize.

Importance Of Checking Your Credit Reports & Scores Regularly

Most people don’t view their credit report or score on a regular basis. This makes it virtually impossible to catch errors or fraud. When they go to get a loan, they are often shocked at how high their interest rates are – or worse yet, they are denied completely for that important loan. Don’t let this happen to you. Make sure you are checking your credit report at least once a month.

Also, whenever you pay your credit card bill, mortgage, or any other loan it is reported to the 3 main credit reporting agencies. These agencies include Experian, TransUnion, and Equifax. Their job is to collect data on potential loan applicants and give this information to lenders so they can give loans to people who are more likely to pay the loan back. So paying on time is just as, if not more, important.

Conclusion
On our site, you can explore the differences between a freecreditreport and credit score. Learn what the average credit score is. Learn how to understand the information on your credit files, and tips on how to improve your credit if it is less than ideal. Make sure to read all of this information as it was written so that consumers could be more aware of how their credit works.

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