Factors which determine credit scores
There are various factors which determine credit scores of consumers. These factors are then included in the computation of credit reports and also the free credit scores. The most vital factor which determines the credit score is the payment history. All previous payments, debts cleared, loans taken, unpaid bills and other similar factors are a part of this history. The number of credit accounts a consumer has also affects their credit scores. The more the number of credit accounts the poorer are the credit scores. The amount of credit used as compared to the total credit limit is another determining factor to calculate credit scores. The lesser the credit used as compared the limit; the better will be the credit score. Other factors which determine credit history include the duration of credit, number of credit inquiries for the borrower and any forms of legal judgments or charges of bankruptcy.
Benefits from free credit scores
Free credit scores help you to get in control of your finances and manage them better. They keep you alert about your current financial activities affecting the credit score. If the credit scores are poor then you can approach for financial expertise to help you improve your credit scores and try and do the same yourself. It also provides better knowledge on the kinds of loans which you can get, the interest rates for the same and other related factors. There are instances when poor credit scores also result in rejection from getting employment. In such cases you can check your credit scores and try to improve the same, where required, to avoid such situations.
Different ways for getting your credit scores
There are different ways through which the credit scores can be availed. These include the online options for getting credit scores or getting the same through mail. There are three main bureaus for providing credit scores. These reports can be availed every 12 months. Hence you can request for them separately and get at least credit report every 4 months.
What to do in case of discrepancies between the various bureau scores
There are instances where different bureaus provide different credit scores. This is a common occurrence as these bureaus have different computation methods for these scores. An average of 50 points can differ between these bureau reports. But if the variation of points is more than a request should be sent with the copy of other bureau reports to check on the same.