Admit it.
You have no idea what's in your credit report (or else why would you be here).
Or maybe it's that time of year and you are looking to make a huge purchase that you need a loan for.
No worries; now is the time to take steps in the right direction so that you hold all the power of your credit score in your hands.
Let's talk about the "Big Three", the big three is terminology used to refer to the big three credit reporting agencies; Equifax, Experian and Transunion.
These agencies create a readable "snapshot" of your credit history.
Everything from your employment history, birth date, name changes, addresses etc.
can be found within this report.
All three agencies have their very own special algorithms for figuring out where you lie on the scale of credit worthiness.
Using this algorithm the credit agencies are able to put together a score that is used to dictate just how likely you are to repay your loan(s).
This score will also dictate how much you can borrow as well as what your interest rate will be on that loan.
Keep in mind there are other factors that come into play when deciding if you qualify for a loan like your income, your debt and your time at your job but these factors are often "negotiable" if your credit score is on the high end.
What is the high end of a credit score? Your credit score ranges from 350 - 900, the higher the number the better your chances of getting a loan with good terms.
These scores take into account all the history (good and bad) you have on file of paying your bills on time.
Did you make your monthly payments every month as you stated (or signed) you would? Your mortgage? Your credit cards? Your medical debts? Are they all in good standing? If so your credit score will reflect this.
If not well your credit score will reflect this too.
It's also important to make sure that the information listed on your credit report is accurate.
Look for duplicated accounts, proper name changes, proper addresses, accounts being up-to-date etc.
Make sure that the financial picture being painted is that of your own and not someone elses.
Have no idea what is hiding in your credit report? That's OK to.
See annualcreditreport.
com will give you a FREE copy of your credit report from each of the three credit bureaus once a year.
That's great news.
However, the free credit report will not give you a credit score but it will give you an idea of your credit score range.
Should you need to see the credit score with your own eyes you can get a copy of your credit report (as well as some pretty handy tools like starting disputes should you find an error) at one of the big three's websites for a nominal fee (from $14.
95-$20.
00 or so).
It's pretty safe to surmise that if you've paid all your debts on time, been at your job at least 2 years, have steady income, and are not in debt up to your eyeballs already your credit score is average.
Your free credit report will give you a picture of where you stand and if there are accounts that need to be attended to before you apply for that mortgage, car loan etc.
What are you waiting for? Go get your free credit reports and start figuring out where you stand financially.