Where Can I Get a Free FICO Score Credit Report Online?
Your credit report, also known as a FICO score, is used by banks and other financial institutions to determine the statistical chance of you not repaying your loan. This score takes into consideration your previous and current financial activities and calculates them into a numerical representation of the risk involved for the bank. The higher your score is, the less risk for the lender, and the better your rates and terms will be.
What is the Average FICO Score?
The FICO scoring system, created in 1956, has become a standard way for many mortgage lenders to judge risk-factors that may effect their loans. This score generally ranges between 300 to 850, with 850 being the best possible credit and 300 being the worst possible credit score. The average median score for adults living in the United States is 720 points.
There are five main factors involved in the calculating of your credit score. These factors include, in order of importance, your payment history, amounts you currently owe, the length of your credit history, new credit accounts, and the types of credit you have used.
How Can I Raise My Credit Score?
One of the most important factors in maintaining a good credit score, is to frequently check your report, as the majority of people have errors, fraudulent charges, out of date entries, or other factors that can negatively effect their financial standings. The easiest and most cost efficient way to check your credit is by taking advantage of one of several websites offering free FICO reports online.