Credit and Debt
Why is a credit score/report critical?
A credit score and report give you detailed information on your credit health. While the consumer uses credit reports to detect fraud or check overall creditworthiness, a company could use the score and report to judge the reliability of a potential employee.
Credit reports versus credit scores
A credit score is the numerical summary of a credit report, which analyzes an individual’s credit history. Previous addresses, work history, credit cards, credit history, and bank accounts are all included in the report.
The most commonly followed credit scoring system is the FICO score. A score of below 580 is poor, while a score above 800 is exceptional.
The different components of a FICO score are listed below:
- Payment history
- Amounts owed
- New credit
- Credit history
- Credit mix
How do I get a free credit report?
The Fair And Accurate Credit Transactions Act (FACTA) guarantees that consumers can examine their credit reports at no cost once every 12 months. AnnualCreditReport.com, sponsored by Equifax, Experian, and TransUnion, is one of the most popular websites.
How do I check my credit score for free?
The three-number score is more difficult to obtain than the report. One of the most widely accessible ways to get it is through your bank or credit union’s monthly statement or online portal.