Where to find a free credit report?

As many of you know, the recent credit crisis has paralyzed many Americans’ credit. Credit is increasingly important because of the crisis. Many financial institutions and consumers are starting to care more about customer credit.

Finding your credit score is very easy and does not take much effort if you know where to go. It is quite possible to find a free credit report online. Most people do not check or do not even know their credit score, you’ll be ahead of the pack.

How is your score calculated? Institutions that check your credit will compile several fields of information. A third of your score comes from your previous payment history. Another third comes from your total outstanding debt. About 15% has to do with the length of your credit history. Finally much smaller percentages are the percentage of new loans and the amount of diversity that exists in the credit portfolio.

Did you know how financial institutions use your credit score? The bankers, managers of loans and lenders review your credit score to determine a prediction as to whether or not you will be able to afford a loan they give you. In addition, you’ll make your payments on time or not. The score itself is an outcome of a mathematical formula designed to predict the likelihood that the owner of the partition will fail to make payments within 24 months. A high score like 750 + would be low risk, where a score below 600 would be risky.

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