Annual free credit report - Free Yearly Credit Report

A credit score is a number that represents the creditworthiness of a person, or the likelihood that person will pay his or her debts. It has shown to be very predictive of risk, made credit more widely available to consumers and lowered the cost of providing credit. A credit score is calculated based on the statistical analysis of a person's credit report information. Banks or lenders offering loan and credit card companies, use these credit reports to evaluate the potential risk involved in lending money to consumers and to mitigate losses that they occur due to bad debt.

The three major credit reporting bureaus in the United States that are responsible for preparing these reports. These agencies are Equifax, Experian, and TransUnion. They collect data about consumers in oredr to compile their credit reports. Each of these credit agencies have their own databases, gather reports from different creditors, and receive information from creditors at different times. So the credit scores of the three may vary from each other.

According to law, upon request you will be provided with one free copy of your annual credit report by each of the 3 major credit bureaus. It is important to evaluate and asses this information not only to tap your financial standing but to improve it.

As stated in law, you are also entitled to a free copy of your credit report if in case your loan application has been declined by any lender along with the reason for disapproval. They are mandated to provide you with the name and contact details of the credit bureau they obtained your information from. To attain your credit report you can then contact this credit bureau within 60 days using the information provided.  

By accessing your report you can know your credit worthiness. In case you don’t find your report in immaculate condition then you can improve it. By clearing off your outstanding debts and making loan repayments on time if you have any you can improve your credit history.