A credit score is a snapshot of your financial story and is used to assist in deciding your credit worthiness.

Companies who provide credit may use this score to help determine if you qualify for loans, credit cards, utilities or other credit as it tells the likelihood of you paying your bills.

If you are approved for credit the organization who approves you may also consider your score when determining your interest rate and credit limit.

As a method to define if you are responsible with money lots of employers and landlords will search your credit report as well.

Federal law in the United States grants every resident one free copy of their credit score every twelve months.

The 3 key credit bureaus; Experian, Equifax and TransUnion use slightly different algorithms in arriving at your credit score so you may have a variety of scores at each of the three bureaus. Getting your credit score from each of the three credit bureaus becomes important once you know they all use different scoring models.

The Basic Makeup of a Credit Score

The following is the estimated breakdown of how a credit score is arrived at:

* 35% is your history of paying debts. Paying bills such as mortgage, auto loans or credit cards behind schedule may decrease your score. Making your payments on time will over time advance your score.

* 30% is attributed to credit utilization. This is the ratio of your total credit in use compared to the total credit limit available. Your score can be improved by paying down some debt which in turn lowers your utilization ratio.

* 15% goes towards credit history length. If you pay your bills on time then as your credit history increases in age so will your credit score.

* 10% based on variety of credit used. By implementing diverse forms of credit like installment, revolving and consumer finance you can also promote your score.

* 10% Numerous applications for credit. By taking out numerous credit applications or inquiries in a short timeframe you can also negatively affect your credit score. Make a point of spreading out your credit inquiries over time.

Credit Score Range

The range of credit scores is from 300 to 850. Approximately 60% of scores fall between the 650 and 799 range. History shows the median score to be 723.

Best Reasons to acquire Your Credit Score on an Annual Basis.

* If you will be making consumer purchases in the near future

* If you are wanting to secure a lower interest rate for an current loan or if you will be applying for a mortgage.

* So the next time you make a vehicle purchase you can be sure to receive the best possible interest rate.

* To prepare yourself for any feedback you might receive from a potential new employer/landlord who may likely investigate your score.

* To insure it’s proper.

* To monitor for potential indicators of identity theft/fraud.

The reasons for getting your credit score listed above can have a significant affect on one’s finances so this is worth taking seriously.

With internet access around every corner, access to your free credit score has never been faster or easier allowing you insights into your credit history, your credit worthiness, your credit potential and the power to insure the information included on your report is correct.

To instantaneously receive your credit report merely fill in your basic personal info like address, name, social security number and date of birth and then hit “submit”.

Considering the simplicity of acquiring your credit score and the fact that it’s free means there is no longer any reason to not get yours today.

Click here to instantaneously download your free credit score.