Our credit reports and scores are the things about which we know should know a lot. Major purchases, capability to get a loan and many other things depend on the score you have. The score may be low or high, and high low, of cause, is what you need not to be rejected by lenders when you apply for a loan.

In reality, a lot of factors may have influence on your score making it lower or higher. In any way, you also have a lot of techniques available to make your credit report and score better.

But let us start from the very beginning, that is from the Fair Issac Corporation that has introduced the FICO score. Thus, in 1958 the first credit scoring system was created. There are three major credit reporting agencies that possess their own scores similar to the FICO score.

A lot of people prefer the FICO score due to the fact that it doesn’t comprise such information as gender, marital status, or something else of this kind that makes the score biased. The FICO consists of five categories (types of credit used, length of credit history, credit utilization, past credit applications, payment history) each of which makes no more than 35% of the score in total.

Let’s have a closer look at each of these categories:

At first, the length of credit history is the length of time during which you have had a credit and have been paying it on time. It makes up 15%. The second category, the credit utilization reflects credit/debt ratio and makes up 30%. Next, the payment history, is the factor that makes up 35%. Your late and missed payments affect the FICO score significantly. And making payments on time will better your score making it high. Mind that putting too many purchases on your credit card will low your score down also. You need to monitor your score to be sure that it is high enough, maintains needed balance and doesn’t contain errors.

To check whether your FICO score contains errors, which can happen sometimes, you can order it from each of the three major credit reporting agencies. You need to be active and disciplined in this issue. When you get your FICO you will see a number that ranges from 300 to 850. The closer your score to 850 point the better. You can get loans and the interest rates will be low.

If your score is far from this point it means that your score is low and you are regarded as a debtor that cannot make payments properly and in timely manner. If you have found yourself in such situation a lot depends on you. There are methods to improve your score and it is up to you to apply them to better your score gradually.

In our daily life we can find many examples how good information applied at a proper time can save you from big troubles. With credit score this is also the case. With free credit score info you can act accordingly.

So, if you are looking for free credit score information, together with practical guidelines - please go to this web site. Compare and use free credit score for your advantage!