Free Credit Analysis and Credit Score Websites
Like any number that represents something complex, credit scores can be difficult to understand. However, having an understanding of what goes into your credit score is an important part of improving your financial health.
Luckily for you, there are plenty of great resources available for free. Read on to learn more about how your credit score is calculated and where you can get a free credit report (as well as some other useful information).
WHAT IS YOUR CREDIT SCORE?
It is a financial score that can range between 300 to 850, with 850 being the best. It’s formulated based on your credit report, which is a record of how you’ve borrowed money in the past and whether or not you paid it back.
A high score can help you get approved for loans, mortgages, and credit cards; get better rates on loans; sometimes even open doors with employers that check your credit history before hiring.
WHY IS YOUR CREDIT SCORE IMPORTANT?
Your credit score is important because it can help you get better rates on loans and other types of credit. If your score is high, lenders will assume that you are a good risk and be more likely to give you a loan or credit card at a lower interest rate. If your score is low, they may not want to lend money to you at all.
Low-interest rates can save people thousands of dollars over the course of their lives because they pay less interest than they would if they had higher rates on their loans.
For example, someone with excellent credit who pays $2,000 in interest each year has $44,000 in student debt over 30 years at a 6% interest rate compared with someone with good credit who pays $4,500 in interest each year and has the same loan amount outstanding for 30 years at 8%. That’s an extra $36K that goes toward paying off their student debt instead!
WHAT FACTORS DO CREDIT SCORES CONSIDER?
Credit scores are based on the information in your credit history, which includes:
_Your credit history_
This is a record of all your past borrowing and repaying activities. It includes any accounts you’ve opened, how you’ve managed them over time, and whether or not any payments were made late or if late fees were charged.
_How much money do you owe?_
Your total balance is important because it indicates how much debt you have relative to the amount of available credit.
Too much debt can indicate that you’re overextended and may be more likely to miss payments in the future; too little suggests that there isn’t enough available credit for what you need now or in the near future.
For example, if someone has only one loan with a $1,000 balance but has many different lines of credit totaling $10,000 overall (5 cards with $2K limits), then their score would likely be higher than someone who owes $5K on one card alone with no additional lines open at all because they appear more responsible by having less debt overall compared against their limits compared against total income.”
FREE CREDIT REPORTS
When you request a free credit report, you’ll often get more than one. Credit reporting companies sell your information to other businesses that then offer their own products or services.
The goal is for them to try and convince you to buy something from them—which means that if you receive an email saying that “the government is giving away $1,000 just for typing in a few digits!” it’s probably not true.
It’s important to remember that when it comes to your score, all of these sites are trying to sell something, too—but they’re also trying at keeping up with the latest technology and trends so they can keep providing great service.
FREE CREDIT REPORT WEBSITES
There are several websites you can use to get your free credit report. They include:
One of the most popular sites on the internet that provides credit scores for free, and it also gives you a free credit report with its service. You’ll need to set up an account with them before they will send you the report, but once that’s done, it comes in handy when making decisions about what kind of loans or credit cards to get.
Free credit scores from Equifax and TransUnion are projected from the 3.0 model of VantageScore, which was devised by major credit bureaus as a consistent and more accurate alternative to FICO scores.
Another online site that provides users with their scores for free (and also offers tips on how to improve their scores). This website does require that users enter some information about themselves before being given access to their reports; if this feels too invasive for you then there are other options out there such as those listed above where no personal information needs are provided at all.
With VantageScore Mobile, you can access your VantageScore straight from TransUnion. What’s great with CreditSesame is that it provides its users with tips and suggestions based on their credit profiles and financial goals, all of these are tailored to help improve one’s credit score
WalletHub’s credit report is provided by both TransUnion VantageScore and TransUnion. To register, you’ll need to provide your personal details, including your name, address, phone number, and Social Security number, as well as some additional information about yourself.
The WalletHub dashboard provides users a platform to view their credit accounts and balances, it also has a credit alert section that provides summative reports in letter grading on the factors that affect your credit score.
Another great feature is that the site pings you when your debt load has exceeded in reference to your salary, or if you have been using your credits too high which may affect your credit score negatively.
Your credit score is a reflection of your financial habits, so make sure you are paying attention to it and taking steps to improve it.
Using these free platforms will help you keep track and improve your score by being fully aware of your purchases and better options out in the market!