Saturday, July 2, 2011

Credit Scores - Free Credit Score Check

Credit Scores - Free Credit Score Check

Understanding The Free Credit Score Product

Before you ever apply for a loan anywhere - whether at your local bank, or online, you need to fully understand what your credit rating status is, your current FICO number, and the reality of this process.

The important word here is CURRENT. Don't get down on yourself just because you have a low FICO score. Don't. You can change this over time, and you turn around your borrowing power quicker than you think. It just takes understanding how the main credit bureaus sum up your score.

Experian, TransUnion, and Equifax are the "big three" credit reporting agencies, and they greatly effect the APR at which you will be borrowing money, how much you can borrow, and the terms in which lenders will "float your note" - so to speak.

Understanding the So-Called Free Credit Score Products

Free credit score companies make their money via membership, and this is how it works. You sign up for a membership that is always temporary - why? Because once you have a handle on your exact FICO rating, and have removed any blemishes on your record, you no longer need the membership.

Yes, some will agrue that you should always have a membership with a credit score company so that you can be updated constantly as to your current rating, and there is some merit to this argument, but in general most borrowers don't bother.

So you are getting my drift here right? When a credit score company says it's a free service, it's not for long. You may get ONE free credit score check, but if you want to always be abreast of your score, you need to buy a membership.

For more information on free credit scores feel free to bookmark for future reference.

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