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Free Credit Report & Credit Score Information (Credit Rating, FICO Score)


Free Credit Report:

All Americans are able to get 3 free credit reports every year, one report from each of the three major credit bureaus. But you cannot get the report directly from the Credit Bureaus, at least not without paying.
For your free credit reports, you must request them using one of the following methods:
1. Go to www.annualcreditreport.com, which is the only authorized online source for a free annual credit report:
2. Call (877) 322-8228.
3. Complete the form on the back of the Annual Credit Report Request brochure, and mail it to:
       Annual Credit Report Request Service
       P.O. Box 105281
       Atlanta, GA, 30348-5281

You'll be able to order one credit report from each of the three Credit Bureaus - you can order them all at one time, or at different times throughout the year.

Credit Score Definition:

Like most people, you are probably aware that you have a Credit Score. But you may not quite understand how your Credit Score is calculated, what factors influence your Credit Score, or what your Credit Score actually means. Credit Score Defined: A credit score is a numerical index which represents an estimate of an individual's financial credit worthiness at a particular point in time. It is calculated from a subset of the information in an individual's credit report, using a standardized formula. Banks, credit card companies, and other lenders use credit scores to determine credit limits and interest rates. There is disagreement to the actual range of Credit Scores, but they are typically between 300 and 900, with 300 indicating a very poor credit risk, and 900 representing little to no credit risk (ie, the debt would most likely be repaid as agreed).
The average credit score in the United States is around 700.

How Is a Credit Score Calculated?

The FICO (Fair Isaac & Co.) credit scoring model is by far the most commonly used. FICO develops credit scores using information contained only in credit reports; it compares the information contained in a person’s credit report to the patterns of information contained in thousands of other credit reports, and calculates a credit score that represents the credit risk for a particular individual.

FICO Credit Score Components

  • 35% Payment History - This factor looks at whether you pay your bills on time, or late. If they’re late, how late are they? How often do you pay late? How recent are your late payments? How many accounts show no late payments? Have you had accounts turned over to collection or a judgment entered against you? Have you filed for Bankruptcy?
  • 30% Amounts Owed - This factor looks at the total amount you owe, and on what types of accounts. How many accounts have balances? How much of the total credit line is owed? How much is owed now in relation to how much you borrowed originally?
  • 15% Length of Credit - As a rule, a longer credit history will increase your score. This factor also looks at how long you’ve had your credit accounts, and how long it’s been since you used your accounts.
  • 10% New Credit - This factor looks at how many new accounts you have, how long it’s been since you opened them, how many recent requests for credit you have made, and the length of time since credit report inquiries were made by potential lenders.
  • 10% Type of Credit - This factor is based on the overall mix of credit cards, installment loans, mortgage loans, etc. The more balanced the mix, the more likely this factor is to improve your overall score.



  • You should also be aware that you may have more than one FICO score, since each of the three major credit bureau reporting agencies only uses the information contained in that agency’s report. And since each agency collects and reports information differently (albeit slightly), it’s possible that you'll have up to three different scores.


    The Three Credit bureaus


  • Equifax
    P.O. Box 740241
    Atlanta, GA 30374
    (800)-685-1111
    www.equifax.com
  • Experian
    PO Box 9554
    Allen, TX 75013
    (888) 397-3742
    www.experian.com
  • TransUnion LLC
    P.O. Box 1000
    Chester, PA 19022
    (800) 888-4213
    www.transunion.com


  • Improving Your Credit Score

    Here are some things you can do to help improve your credit score, both in the short term and over time.
  • Consistently pay your bills on time.
  • Limit how often you apply for new credit
  • Limit your charges on existing credit.
  • Pay down or decrease your debt.
  • Request your credit report, check and correct any items that are inaccurate.
  • Do not close old accounts – You want your reported credit history to be as long as possible.


  • And remember, understanding your credit report score can help you make intelligent and informed credit decisions and greatly improve your overall financial situation.
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