Credit Score is the basis on which the decisions related to loan , mortgage and credit cards are taken by the financial institutions ,Banks and lenders. Whether you will get a loan at a higher rate or lower rate is dependent on your credit score. Good credit scores can save you thousand of dollars while having a bad credit score will require you to shed a lot of money.Lets understand how to access credit scores instantly.
Credit Score Online:
With an increase in the demand for loans and credit , reliance of the lenders has greatly increased on the credit bureaus providing credit scores. There are more than one credit Bureaus which provide Credit Scores. FICO, Equifax,TransUnion and Experian are the different Credit Bureaus which provide credit scores online . All the bureaus have different methods of calculating the Credit Scores and hence there is a slight difference in the credit scores provided by them. Many lenders make their decisions by taking credit scores from all the bureaus and making a decision on the consolidated credit scores.
Online Access to scores:
All the credit bureaus provide access to the credit scores online. One has followed a simple process to register on the website of the credit bureau. Registration is generally free and requires some basic information of an Individual. Once registered the details are verified for correctness via an email send to the person. Post verification the registered users can download their credit scores and reports online.
Of all FICO is the most acclaimed and the oldest credit bureau. Most of the Banks and the lenders use FICO scores for making their underwriting decisions. The credit scores range from 300 to 850. Most of the people have their credit scores between 600 to 750. Any score above 720 is considered to be good while scores below 600 requires immediate attention.
Around 80% of the credit reports have incorrect entries. There are several errors, and incorrect outdated entires which reflect in the report or entries which exist in the report even if the payments for them has been made. Such anomalies result in a lower credit score. One needs to frequently check the report, and notify the corresponding bureaus for the rectification.
Monitoring of credit reports provided by the bureaus is essential as it helps in the quick Redressal of grievances thereby saving your credit score from unnecessary losses. There are a lot of agencies which provide credit monitoring services to consumers. However, people do not use the service because they are ignorant of the services.
Credit monitoring services track all the changes in the credit report , provide regular updates and send in case if any significant drops are observed in the scores.
Credit Bureaus provide Credit Scores which are different from one another. Instead of getting panicked if one of the bureau report shows lower score, one should get the credit report online and carefully check all the entries in the same. This will help check the discrepancies if any and Quick fixes them. Getting the details online helps in quick access to the Scores.