Free credit score
The economic crisis as well as the collapse in housing has given rise to drastic changes in lending rules. As a result not so many people qualify for the traditionally low rate mortgages because of bad credit scores. For this reason, it is important for one to ensure that they check their free credit score so that they are aware of their position as well as how they can improve so that they can qualify for low mortgage rates. The question then is how and where do you get your free credit score?
There are quite a number of sites that offer free credit scores that are determined by scoring formulas which are similar to those used by the national credit bureau formulas at Equifax, Experian and TransUnion. Even then the accuracy of the scores generated is subject of debate. In fact, a recent article in the Wall Street Journal indicated that the scores should not be relied upon totally especially with regard to refinancing mortgages. The sites thus only offer you a score that is estimated other than the real score. These sites are usually flooded with advertisements as well as offers that encourage you to sign up. Why the government does not offer free credit scores alongside the free credit reports is a question that many seek an answer to. This is answered by the fact that this was not included in the initial arrangements for agencies involved in credit reporting who are now required to offer them at not cost by the law. These agencies are only mandated to offer free credit reports hence they focus on that alone.
These agencies make money from selling the credit scores to individuals who are interested. These are usually sold for between USD 8 and USD 10 for every score. This therefore means that you will need to have at least between USD 24 and USD 30 whenever you plan to check your credit scores. Credit experts advice that you check the scores every so often translating to a budget of a little over one hundred dollars every year. All you need to do is simply sign up on any of the sites that are also advertized on TV in order to begin receiving not just your credit reports but also your free credit scores. This is beneficial as it also enables to monitor your scores on a regular basis thereby being informed about how credits worthy you are without wasting time sifting through volumes of pages of the credits reports that you get. Of important notice is the fact that by getting your credit scores this way it does not in any way affect your credit score since it is only a hard inquiry that is known to lower your score. The other advantage of this is the fact it gives you the freedom of keeping track of your report as well as being able to track any activities that may be suspicious and are bound to affect your credit scores.