No Credit History? How To Gain Your Credit Score

According to conventional definition - a credit score refers to a numerical expression - which represents the person’s credit worthiness. A credit score is generally based on a credit report that’s obtained from the major credit bureaus. According to the US Faire Credit Reporting Act - a person can get a free copy of their credit report from the major credit bureaus - namely” TransUnion - Equifax and Experian. The credit report is provided at no cost - and can be requested every 12 months. Here’s how to gain your credit score.

Collect All The Require Information

Before getting a free credit report - first obtain all your account numbers and loan statements - since the credit reporting bureaus may ask that you provide the account numbers and payment amounts - to validate your identity. A credit score is often generated by tracking data from a person’s credit report - into software which analyzes it - and releases a number afterwards. The three major credit bureaus do not necessary use the same system - and use different names for it - therefore it should not come as a surprise if the scores the churn out are a bit different.

Go To annualcreditreport.com

Next - go to annualcreditreport.com - which is the only authorized Web site of the FTC. From here - you can link to the three major credit bureaus. Credit experts however frown on going to sites like the Free Credit Report - because despite their name - they actually charge monthly fees for their credit monitoring service. Once you’re in the site - choose your state from the pull-down menu - and start filling your information.

Ask For Credit Reports From The 3 Major Credit Bureaus

The next step would be to request for credit report from the 3 major credit bureaus - since you won’t be charged with any fees. However - because you’re only allowed one company per year - order them on a staggered basis throughout the year instead.

Print Your Credit Report

Once you request your credit report - print it out once it appears - because the major credit bureaus won’t send them to you via eMail. Look for links on the first page of the Web site - which allows you to print the report. While getting a credit report usually comes at no extra cost - these companies are allowed to advertise other paid services - such as a credit monitoring service - which goes for a small monthly fee.

A person’s credit score ranges from 500 and 850 - and this scale numerically defines a person’s credit worthiness. The credit score is valued - and analyzed by banks - credit unions and other financial institutions - as well as by employers - mortgage companies - and even by your landlord. Once you obtain your credit score - make sure you regularly track your credit by signing-up for a free online credit report.

A free online credit report helps you quickly find out whether there’s an error or inconsistency in your credit history - so that you can immediately have those errors erased or corrected - and you’ll have a much easier time dealing with potential lenders.