Business & Finance Credit

FICO Credit Score - What is a Good FICO Score and How Can I Get Mine For Free?

Your credit score is like your financial GPA and allows financial institutions, banks and other lending institutions to have an understanding on how you have managed your loans or finances.
The FICO score has long dominated America's financial rating systems as the primary credit indicator.
They have dominated because their process of scoring is precise and allows financial institutions and lenders cut the threats or risks of doing transactions with people who are at high risk of not paying their debts or loans back.
After the above mentioned information, you must be thinking that what is the process through which your score in credit report is calculated or arrived at? Your score is simply calculated by looking at the differences between your remaining loan amount and payments that you have made.
To understand this in simpler terms, say you calculate the probability of utilizing your maximum credit limit.
So, the moment you reach your maximum credit limit, your FICO score starts declining.
However, if you make timely payments of your loans along with proper interest rates your score will start rising again.
So, once you are aware about the importance of having a healthy credit score, you would automatically understand where to look for your score.
Today, you will find a lot of Americans who have no understanding about their FICO credit rating and also they are neither aware of how it gets calculated or arrived at.
To be fair, the simplest and easiest way for any person to know their FICO score is to see it online by requesting it on any website that offer such kind of services.
You will find a lot of companies on internet that offer such services; however, be sure that everyone will have their own way to calculate your score.
In addition, these companies have to offer their customers services to check their score or ratings without any cost primarily due to the law enacted by Fair Credit Reporting Act.
However, even after the above discussion you are not sure of how your rating or score is calculated, the simplest and easiest way for you is to order a free rating or credit report from any one such website who provides such online services for free.

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