It's easy to judge your own credit when you can get credit rating reports free. The ratings are
produced by different formulas, but they rely on the same information and produce similar results.
And if you know how the information in credit reports is generally weighted, it can help you fix
any weak areas you find after getting credit rating reports free.
The credit rating reports free you get were created from the statistical analysis of hundreds
of thousands of credit reports. As an example, Fair, Isaac and Company, which produces the
formulas for the most popular ratings, uses the following approximate weights in their rating
formulas:
- Payment History - 35%
- Current Amounts Owed - 30%
- Credit History Length - 15%
- Recent Accounts Opened - 10%
- Types of Accounts - 10%
Although there's no magic fix to improve your credit rating there are certain actions you can
take to make it better. The first step is to pay bills on time and make back payments on any
delinquent accounts. Late payments and nonpayments are a major source of a negative credit
rating. Next, keep your balances low on credit cards and other kinds of open credit. It's not just
the total amount you owe that's important, it's also the amount owed in each account. And after
getting your credit rating reports free, keep in mind that you rating won't improve by borrowing from
one account to pay off another.
When getting credit rating reports free, another factor to pay attention to is the number of
your accounts. It's not good to open several credit accounts at once, especially if you have a
short credit history. Each new account lowers the average age for all your accounts which also
lowers your credit rating. Particularly for inexperienced borrowers, a rapid credit buildup makes
you look risky to lenders. So if you have little credit, open several accounts over the space of
a few months and make regular payments on each.
If you'd like credit rating reports free along with a free credit report and free 30 days of credit
monitoring, please go to
free instant credit reports.
