How to find out my credit score for free?

How to find out my credit score for free?

You can request a free copy of your credit report from each of three major credit reporting agencies – Equifax®, Experian®, and TransUnion® – once each year at AnnualCreditReport.com or call toll-free 1-877-322-8228.

You can also use the credit report available for free from your bank (if there is one available). Another way on checking your credit score which is more in details and very helpful, is through Credit Karma (Creditkarma.com) it’s secure and free.

Your credit score is based on your credit report data from one of the 3 major credit reporting bureaus: Experian, TransUnion and Equifax. 

Scores info:

800 + : 
This is an Exceptional credit score and that should be your goal. This credit score range is way above the national average and borrowers within this range will most likely not have a problem getting credit.

740 to 799:

Score: Very Good. This score range is also above the national average and borrowers in this range are at a great advantage in both the likelihood of getting credit approval and being offered lower interest rates.

670 to 739:

Score: Good. A “median” range, this score identifies a borrower as “acceptable” which means he or she might not get as low an interest rate as those in a higher credit score range.

579 and lower:

Score: Poor. Consumers who fall within this range are considered a poor credit risk and may be rejected. Many who fall within this range must often put down a deposit or pay a fee to obtain a credit card or home utility services.

How to increase my Credit Score?

Tips on Increasing Credit Score

Having a higher credit score can save you money and can open new doors for you, below are some tips and steps to have a high credit score.

Payment History (35% effect on FICO score)

•       Paying your bills on time.
•       If you’ve missed a payment, pay it right away and stay current. (Call your credit card  company and ask them to reimburse the late fee and never ever miss a payment again)
•       Paying off a collection account won’t remove it from your credit report.

Amounts Owed (30% effect on FICO score)

• Keep the balances on your credit cards low by paying them off every week or twice a month.
• Never move your debts around, pay them off as soon as you can.
•       Don't open a lot of new credit cards that you don't need.

Other Essential Tips:

 

• Having a higher credit line (Total Credit) will increase you credit score. Usually every 6 months you can request a credit limit increase from each of your credit card companies BUT make sure there is not going to be a hard inquiry on your account! (American Express usually doesn’t run a hard inquiry if you request less than $25K increase, Capital One, just request through their App and you are gonna be fine, Chase and Bank of America have a hard inquiry anyways!!)

• Having a higher credit limit doesn’t mean you have more money AT ALL! It simply is a number, you are not allowed to use it unless you are sure that you can pay it back within 30 days.

• NEVER close a credit card that you don’t use, just simply use it once a year and pay it off right away, this way your credit history and total credit line limit are gonna be high and as a result, you are gonna have a higher credit score.

• You can check your credit score for free from different sources without any effect on your score. (Credit Karma, BOA FICO and Capital one credit wise are some examples of those)

• Choose your credit cards wisely! This means, check the cash backs they offer when you are gonna shop somewhere or in Gas station or …, use the one that has a higher cash back or benefit for you (Don’t forget the deals available on some of your credit cards)

• Take advantage of the bonuses on opening the credit cards but don’t get the credit cards with annual fees unless you are 100% sure you are gonna get your money back every year PLUS more cash back or values.
• Instead of being afraid of having credit cards and use cash, LEARN to have discipline and use your credit cards ONLY when you can pay it off really fast

How to build Financial Freedom? (Becoming Financially Free)

Six steps to building your financial situation

1. Increase your cash flow

It is but obvious that everyone who has invested his money in the market always looks for more and more profit to be earned each time. Once the cash flow increases in the business, the chances of increasing the profit get higher. So, we should find a way to make more money with our money, the trick here is that you don’t want to sell your time for it! I’ll show you how you can do this in later posts.

2. Manage your Debt

It is one of the major tasks to manage the amount of debt. There are good debt and bad debt that we should be aware of them, and we have to get rid of the bad debts as soon as possible. One of the bad debts so many people have is the student loan. There are a lot of ways to get rid of them, you can do your own research or let me know and I will introduce you to best people in this category.

3. Create Security Fund

Most people call it emergency fund but I prefer a more positive word, Security. Each person should always have some amount saved so that unexpected expenses can be paid off with ease. One of the ways you can make your security bucket filled so fast, is by putting the money you saved on number 2 above in a secure account who gives you a good return.

4. Make sure you have the proper protection

You should be very cautious in choosing the credit repair company for repair and maintenance of credit report, because they use all the legal procedures and policies to correct the mistakes in the report. This is so important because it can put you in trouble under various acts and legalities. In addition to these one should always look for those measures which will help in reducing the loss of income and all the family assets (like having a trust or specific kind of corporation or …)

5. Build long-term savings

Long-term savings such as investments in various assets like real estate, gold or one other great option “IUL” will help very much in impressing your lenders or financial companies. Present yourself as a wise and foresighted businessman but a responsible citizen also. This always helps in minimizing the effect of inflation and long-term investments help in cutting the tax costs.

6. Preserve your Estate

Reduce the probate costs (Probate cost is the cost when you have to claim the assets of any deceased one). There are number of technical aspects which need to be considered regarding the probate administration such as creditor notification, petition for a personal representative etc.