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Have you checked your credit score recently? Checking and monitoring your credit score are imperative for the goodness of your financial life. Credit score and credit report go hand-in-hand. A credit report helps in creating the credit score by analyzing that data to determine how someone is likely to behave in the future. If you are bewildered on the subject of credit scores and how does it work? This article will walk you through the basics and everything you want to know about your credit score.
What is a Credit Score?
A credit score is a three-digit number ranging from 300 to 850 which is a result of a credit file analysis. This significant number predicts your ability to repay loans and tells lenders about potential credit risk.
Who Creates Credit Scores?
The credit scores used by the lenders and insurance companies are created by the FICO or VantageScore using credit information from the three major credit reporting agencies – Equifax, Experian, and TransUnion.
What is a Good Credit Score?
Here is a basic guideline:
- 760 – 850: Excellent
- 700 – 749: Average – very good
- 650 – 699: Fair
- 600 – 649: Poor
- Below 599: Bad
Why do I need all three scores, when other companies only offer one or two?
Lenders don’t use the same credit bureau to check your credit reports and your credit scores may not all be the same. FreeScore360 provides your scores from TransUnion, Equifax, and Experian. So you know where you stand and no matter which bureau lenders use!
They monitor your credit report daily and notify you with a credit alert when a change or suspicious activity is detected that could pose a threat to your credit scores or be a red flag for possible identity theft.
What to do if you see an error or fraud on your credit report?
File a dispute! Errors or fraud can lower your credit scores and cost you money. FreeScore360 Dispute Center provides a step-by-step guide to help you navigate the process of filing a dispute with all three credit bureaus.
Building the habit of checking your credit score is necessary for your financial health. Know your credit score for free with ScoreSense®. Do keep in mind checking your own credit won’t hurt your scores. All your information is protected with 128-bit encryption to ensure your data is not intercepted by third parties.