How to Obtain your Credit Score

Your credit score is a number between 500 and 850 that numerically defines your credit risk. They are the 3 most powerful digits in your financial resume. It may seem like only lenders and creditors have access to your elusive score but that isn't the case.

Difficulty:

Easy

Instructions

1. You should first understand how your credit score (called a FICO score, as it's scored by software copyrighted by Fair Isaac Company) is assigned.

   * Payment history accounts for 35% of your score
   * Amounts owed makes up 30% of your score
   * Length of credit history is another 15% of your score
   * Numbers of new accounts and types of credit used each make up 10% of your score

2. Visit the site below to receive your FICO score for free. You will have to sign up for a trial account and enter billing information but you can cancel your trial before 30 days is up to avoid charges.

3. Sign up for a free trial of Score Watch, a scoring program partnered with Equifax at either of the sites listed below under Resources.

4. Receive a free trial of True Credit, Transunion's scoring partner at either of the related sites under Resources. They also offer a free 30 day trial.

5. Visit either of the sites below for a free 30 day trial of Credit Watch, offered by Credit Expert in partnership with Experian.

6. Cancel your subscriptions before the first 30 days has expired to avoid paying the monthly or annual fee. To cancel, just visit the sites you used to sign up for your trial offer, sign in to your account using your login and password, and follow the instructions to cancel your account.

Tips & Warnings

• Knowing your credit score can be very valuable when negotiating a loan of any kind.

• Expect different scores from each of the different reporting agencies.

• Once you've looked at your credit scores, preferably from all 3 agencies, request that your creditors use the reporting agency that scores you the highest. They may not have a preference or relationship with any of the agencies.

• Pay down your credit card balances, especially those with no stated limit, like Discover and American Express credit cards. Your available balance will stay high, your payment history is essential.

• Do not expect the same scores from each of the three credit reporting agencies or the software partnered with them. They do not each receive the same credit data nor do they share information. You might receive an 800 from one agency and 700 from another.

• Scores under 750 may require an explanation from you before credit will be approved. A copy of your credit report and the ability to explain away your negative entries might lean the loan approval your way.

• Do not expect to receive annual credit scores for free, only your annual credit report, sans score, is offered free at a rate of 1 per year.

• Do not waste your one shot at free credit scores before thoroughly reviewing and correcting your credit report. You are entitled by law to receive 1 free credit report per year.