How To Pull Your Credit Score for Free ? Narrow Bridge Finance

by Eric on October 31, 2012

Credit reports and credit scores?are an important cornerstone of your finances.?If you don?t know your credit score, you should take some time to get your 100% free credit score. Unlike the sleep number, this is a number that can have a real impact to your financial life today and in the future. My favorite place to get your free credit score is Credit Sesame. Here is a guide to what your credit score means and how to get it.

What Your Credit Score Means

Your credit score is a number between 300 and 850 that helps lenders decide if you are credit worthy. The most common score is the FICO score. The components of a FICO score are your on-time payment history (35%), credit utilization ratio (30%), length of credit history (15%), types of credit (10%), and recent credit inquiries (10%). Your score is reported by one of three major credit reporting bureaus, TransUnion, Equifax, and Experian.

Each credit reporting bureau tracks the components of your score independently, so the three may not match.

In general a score above 720 will help you qualify for most any loan with the best interest rate, though some banks require scores over 740 to get the top tier. Below 620, you may have a very difficult time qualifying for a loan.

Where to Get a Free Credit Score

I use two sites to get my free credit score. My favorite site is Credit Sesame, which gives you additional information and tips along with your score. An alternative is Credit Karma, but we will use Credit Sesame as an example in this tutorial.

To start, head over to Credit Sesame and click on the ?It?s Free, Get Started? button. Fill out the form and required information to setup your free account. It takes about 90 seconds to get signed up and started with your credit score report.

Once your report is ready, you will see the overview tab. This tab shows your credit summary. For more detail on your credit report, head to the ?My Creditworthiness? tab under the ?My Finances? menu. This page gives you your score, tells you how good it is, and tips for increasing your score.

Your credit inquiry from Credit Sesame or Credit Karma counts as a ?soft hit? on your credi
t report. It is not visible to lenders and does not impact your score.

Your Credit Score Can Help You Accomplish Your Goals

In the long run, your credit score is a tool that you can use to accomplish your goals. Use your credit accounts to optimize your financial life. You don?t need an 850 credit score to get the best rates, you only need a score over 720. Optimize your accounts to increase your score if you are in the market for any type of new credit or loan, such as a mortgage or car loan. Once you have those taken care of, it is okay if your score drops a little.

I signed up for a new travel reward credit card, which lowered my score, but helped me get free flights. That is worth it if you will not be getting any new loans in the near future.

Your Credit

Do you have any questions on improving your score or optimizing your credit to meet your goals? Please share in the comments. You can also sign up for the Narrow Bridge Finance free money tips newsletter?to get regular updates on personal finance including credit.

Originally published October 17, 2008, updated October 23, 2012. Image by Infusionsoft / flickr

Eric is the founder and editor of Narrow Bridge Finance. He is a financial analyst with and MBA and undergraduate degree in finance.

Tagged as: Credit and Collection, Credit bureau, Credit card, Credit history, Credit Karma, Credit score, credit sesame, Financial Services

Source: http://www.narrowbridge.net/free-credit-score/

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