How to Get Free Credit Report

What is a Credit Score Report?

Credit score represent the credit worthiness of any person and is generally considered at the time of granting of credit by the lenders. It is considered as the barometer for financial health.

What are the Parameters ?

It is calculated based on various parameters as below:

• History of Payments
• Amount in debt
• Any latest borrowings
• What all types of debts are against you
• Any type of defaults or disputed previously
• How frequently you have been borrowing

The credit scores have impact on the amount that can be lent by lenders and also the negotiations on the interest rates for the borrowings. A credit Report is prepared for the person interested to borrow and on the basis of the credit report the lender decides on the amount and the interest rates as also the decision whether to lend the person or not. It is called FICO(Fair Isaac Corporation) score and it estimates the future credit level for the person. It is the calculation of the expected repayment capacity in future for any person. It also represents how the person would manage his debt in future.

A person scoring more would be eligible for lower interest rate and also higher amount as compared to a person with a lower score. The lenders such as credit card company or mortgage loan lender or any other lender basis their calculation on the above key factors however they give different weightage to different factors based on their line of business and the amount of credit they are going to extend.

The credit scores can be obtained free and online by submitting your details with the Credit Information Bureau or any other organization as the case may. It provides your score worked out as above and higher the score you get brighter the chances of your loan or debt getting sanctioned by the bank.
Benefits of Credit Scoring

The benefit of the good credit score would be that the person can negotiate with the lender on the interest rate or the amount of the term of repayment etc. There are some factors which severely affects the credit scores such as number of times you have done late payments and with how much of delay, how old is your debt and any negative details in public records.

Few of your details are not part of the factors while calculating credit scores such as your age or gender doesn’t matter there, your employment details, your location where you live or how long have you been working under which employer etc.

The credit score can be improved with constant monitoring and efforts such as using lesser amount of credit, prompt repayment of high burden debts, timely repayment of the borrowings etc – Loans Near Me.

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