Due to the sheer number of bureaus, agencies, companies and websites that offer credit information, it is very quick and easy for anyone to check their credit score online.
A simple search engine query will bring in tens if not hundreds of results for people looking for their credit score. Simply type in keywords such as ‘credit report’, ‘check my credit score online’ or ‘what is my credit history’ and there will be numerous options.
There are a few things to be aware of however when looking at the search results. Is the website in question representing one of the main credit bureaus? If so that is a very good place to start. The main organisations for credit checks and credit history (where a credit score is derived from) include Experian, Equifax, FICO and Trans Union. While all of these bureaus have different formulas to determine a person’s credit score, they are considered to have the most accurate data and many lenders use the information they have about individuals to monitor whether or not to issue credit to any person. It is advisable to use one of these as a source for information regarding credit reports, scores and history. Furthermore, in many countries a free credit report may be issued by law once a year. While these tend to show a person’s credit history, they do not show credit scores and a small payment is usually required for this.
Other websites offer credit reports from varying methods. Firstly, your data may be collected from other credit agencies and then passed to you through their website. They are simply acting as a third party and will likely make money by charging the user a premium for the privilege of doing so. These types of websites are worth avoiding as really the payment can be avoided or reduced by going directly to a credit agency.
Lastly, some websites offer a credit score rating, which really boils down to nothing more than a vague guess of someone’s credit risk. These can be used as a rough guideline in order to gauge a credit score but seeing as the results tend to be somewhere within a 100 points, they are not very accurate. They are calculated by the user being asked a series of questions about their current and past financial conditions (and sometimes age and area of residency) which is then calculated into a numerical value similar to those found from the main credit bureaus.
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