Free Credit Score Check

You are legally entitled to a free copy of your credit report on an annual basis but not a free credit score check.  People often get confused between the two. Your credit report will outline the information that the 3 credit bureaus hold on file.   Your credit score is a numerical system that your potential creditors will use to help access whether they want to take a risk on lending you funds.

You should check the 3 credit scores and reports held by Transunion, Experian and Equifax will all be slightly different.  when checking your file, you should look for any mistakes which may be impacting on your credit rating.  Such errors include the lender reporting the wrong credit limit, an incorrect payment history or the wrong facility. If you find errors on your file, you will need to write a letter of dispute outlining why you believe the information is incorrect.

Under Federal Laws, the bureau must write to the lender and ask them to prove that the details are correct. If the lender fails to answer or doesn’t provide sufficient proof, the record will be removed from your file and your rating should improve.  It doesn’t cost anything to dispute a transaction and is well worth doing if you believe something to be wrong.

Some dubious credit repair companies will suggest that you dispute all negative entries on your file on the basis that not all lenders will bother to respond to the Bureau so the information will have to be removed.  But you will probably find that this is a waste of time if you know that the details, while not positive, are actually correct. You need to be very careful when dealing with some credit repair “specialists” as they may try to get you to commit an offence. It is illegal to try to obtain credit fraudulently and this includes applying under a different social security number or lying on your application.

You are also entitled to a free credit report but not a free credit score check if you have recently been denied credit. You must ask for a copy of your report within 60 days of the refusal.  This also applies if you get turned down for employment or an insurance policy. You can also get free credit information if you are unemployed or have been the victim of fraud.

You should keep an eye on your annual credit score, as otherwise you could find your rating disimproves due to misinformation or fraud. If you know the answer to whats my credit score, you will be more aware of any changes.

What should you do when you know the answer your free credit score check will provide?  If your credit rating is good i.e. over 650 you should still try to improve it. The higher the rating, the lower the interest rate you will usually pay on any borrowings.  So you will save money.  If your score is lower than you anticipated, don’t despair as you can take steps to improve it.