When you apply for a loan, the lending authority has to sit back and take the final crucial decision about whether to approve or reject your application. Your credit worthiness is a crucial factor here that the lender will need to know so that the correct decision can be arrived at. Your credit score shows how credit worthy you are. So are you asking yourself “can I know my credit score?” It is crucial that you ask for this because you can be negatively affected of you are not doing so.
There are quite a few credit bureaus in the US, which have the responsibility of collecting and analyzing the credit history of a person to determine the credit score and then pass it on to the lender. Three of the major US credit bureaus are the Experian, the TransUnion and the Equifax. Calculation of the credit score of a person is however done independently by these credit bureaus. This is the real reason why there are different credit scores from different bureaus. Yes this is what happens because they follow different methods of calculating the score.
It thus makes sense to check my credit score before placing that loan application. However you will have to know where to approach and how to access this score as there are specific procedures. Do please keep in mind that the credit scores are calculated by all the three credit bureaus. It is important that you check your record from time to time just to ensure that it is accurate.
Individuals can ask for their credit score from the bureaus. And the good news is, it is free as well. Do you think that there is nothing in the report – you should still ask for it. The three bureaus all hold your score individually and you should know your record from them all. The bureaus will offer this information also to the lenders when they are trying to analyze your credit worthiness. Lenders can, armed with this information accept or reject your loan proposal.
If your loan application has been rejected, you should immediately get my credit score. But the fact is that, you should always do the checking before making that application. The authorities might hold against you one single default and not take into consideration your financial improvements since then and this is because sometimes your records are maintained for as long as 7 years. If there are errors like this, you will have to find them out and bring it to their attention because otherwise this is sure to go against you.
Learn how to get your credit scores and reports from all 3 bureaus instantly and online at www.ThreeFreeCreditScoresOnline.com.
