Where Can I Calculate and Obtain My Credit Score?

A credit score is a 3-digit number that can be from 300 to 850. The higher the number, the better your score. The score is a measure of your credit risk, which creditors look at it when determining whether to extend credit, and at what interest rate. It gives them an idea of how likely you are to pay your bills on time.Your credit score will vary between credit reporting agencies. This could be based on different information that each agency has or could be based off of a slightly different calculation method. A creditor will often average the three scores, or take the middle score when determining credit worthiness.The exact calculation they use isn't shared with the public, but the criteria they use is available They generally use 22 different pieces of information in 5 categories to determine the score.

Instructions

1

Thirty-five percent of the rating is based on payment history. If you consistently pay your bills late, or stop paying bills completely, this drags your score down considerably. The score also takes into account how recent late bills are in your history. While items stay on your report for 7 years, more recent late payments affect your score more than older late payments.

2

Thirty percent of the rating is based on the amount of debt carried. How much do you owe for your mortgage, car loans and credit cards? Having credit cards at their limit is detrimental to your score. It is recommended to keep your credit cards at 25 to 50 percent of their limits for the best score rating.

3

Fifteen percent of the rating is based on length of credit history. A person with no credit, or only a very recent credit history will score lower than individuals who have had credit accounts for multiple years. The more history you have, the more creditors have to look at to determine your future habits.

4

Ten percent of the rating is based on the types of credit used. Creditors like to see a mix of installment loans and revolving credit accounts when determining a score. While it's not important to have many different accounts, it is important to have different types of accounts in your credit history.

5

Ten percent of the rating is based on new credit. If you open up a handful of new credit cards in a short period of time, it will lower your score.

6

While you cannot calculate your exact score by yourself, you can purchase your credit scores from each agency. It is a good idea to do this before getting any big loan, so you are prepared and knowledgeable about your score. You can purchase your scores for $6.95 each from the three credit reporting agencies when you request your free annual credit report from Annualcreditreport.com. You can also purchase scores from Myfico.com. Each score will cost $14.95, or you can purchase all three for $44.85.