Free Credit Score Report

November 15, 2009

A recent addition to the federal law instructs the agencies conducting credit checks to give at least one free credit report. The 3 major agencies Equifax, TransUnion, and Experian are required by this statute to submit a credit report once every 12 months to a centralized source. From this source, the consumer may access their free report in order to gauge how their creditworthiness can be improved. The source consists of a centralized website, a toll-free telephone number and a postal address. Designed for a region-by-region roll-out, the program lets you make a personal request for your free report through either of these portals. The request is not automated as yet but making it in person should get you a pertinent answer.


Requests other than the one on the centralized source are charged by the respective agencies. This is except for any other criteria followed to earn you a free credit report. When planning for the purchase however consider comparing prices since these vary with every agency.

In determining your credit score, certain characteristics are used. The significance of these characteristics varies. Past delinquency for instance is a major factor when working out the borrower’s credit score. Your manner of handling credit repayments in the past indicates how you will manage any future loans. The use to which such credit is put will also give an outline of your management skills. A guy who’s close to their credit limit on their car for example is likely to be a high risk borrower. Application for a loan in this case may therefore be just a way to up the credit line. The period which a credit file has been in your keeping will also feature in the FICO system of determining your credit score.


The assumption is made that one who has held certain credit for a longer period poses the least risk. Since they are making regular payment to different credit lines, the risk is well spread out over the portfolio. Initiating several requests on a debt instrument is looked upon negatively by the FICO score. It indicates the borrowers constant need of short term debt instruments thus a likelihood of defecting on their loans. Mixing different credit on your balance sheet gives you a good case when applying for other loan types. Since you already have borrowed funds, you are likely to be making fixed payments to finish off your balance. It is therefore safely assumed that you have access to free money.


660 is more like the average score for which a borrower gets to qualify for their loan. Freddie Mac labels this as ‘acceptable’ and the borrower’s files are placed under basic review. A ‘high risk’ is posed by the borrower with a score under 620 shutting them out of traditional financing channels. Between 620 and 660, the borrower faces a few obstacles when negotiating for a loan with their entire credit history placed under thorough review. Past the 750 value, the consumer’s pints are improved and an average of $200,000 is made available to them in the form of home purchase.

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Written by Uncle Sam · Filed Under Mortgage and Loan 

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