Free Credit Score Services: Services Useful for Several Purposes

Credit score is the reading on the performance of an individual’s financial transaction in relation to the lending authorities. It is known as FICO (Fair Isaac Corporation) score which is built up on mathematical calculation of the transaction behavior of the individual. Credit score is prepared taking several factors into consideration, factors like reimbursement records of the individual, his financial stability, periodicity of credit receipts, kinds of credit availed etc. A credit score scale has been created to represent the transactional performance. It is assumed that there are 300 to 850 marks on the FICO score scale. An individual is said to have bad credit if his credit score goes below 600 marks. There is no doubt that free credit score services are important for an individual. Financial bureaus, mainly, Experian, Equifax and Trans Union), prepare the credit score of the individuals. They secure accounts of financial transactions made by the individual, accounts containing amounts secured as loans, amounts paid back towards outstanding, rates of interest, name and address of the borrower, financial capacity of the individual, name and address of the respective lenders, non-payment records, records of less payment/late payment/defaults/arrears etc. Credit score created by the financial bureaus are available free of cost once in a year. An individual has legal right to seek and secure his credit score. Hence, free credit score services are available from the financial bureaus. Free credit score services include PLUS score. It is possible to obtain PLUS score which Experian, one of the financial bureaus, prepares and provides. PLUS score is the assessment of magnitude of credit risk for an individual. Financial institutions or lending agencies use the PLUS score for an individual who applies for getting finance. PLUS score is used by the employers and also by the landlords. The greater PLUS score for an individual suggests that he holds better credit report, and the lenders can offer him finance at lower rates of interest. Free credit score services can include the following services: 1. Access to free credit score for three credit reportsrn2. Free credit score for a temporary period One should note that offer of free credit score as stated just above may not be free always. Some of the financial bureaus have made these provisions to pull the customers. Customers are asked to register to get other services offered by the bureaus although those services are not free.