The credit score determines the financial status, such as whether you qualify for credit or a loan and most importantly, the interest rate that you pay on your loan. Any financial organization requires to know about your credit score. This helps them in determining if you are a safe customer to carry out transactions with. Your credit score has a major impact on the decisions that you make and the offers you avail because even a landlord can turn you down if your credit score does not measure up to the minimum requirements.

The credit card score reflects how well you are able to manage your debt. If you are looking to improve your credit score, free credit score is the answer. One can apply for free credit through different services to monitor the progress of your credit.

Here are factors that you should understand about credit scores and free credit score:

Which are the key factors that influence credit score?

• Timely-payments can greatly impact your credit score.  It proves to lenders how reliable you are. Even a few payments that are made late can significantly affect your score. Thus, paying all your bills on time is essential for the good health of your credit.
• Your credit history determines your credit worthiness. The older your credit lines, the more information can be acquired. It proves how well you have been able to manage your credit score through the years.
• The total hard credit inquiries are those that occur when you apply for various loans such as student loan, personal, mortgage, etc. These are checks made by institutions to decide on whether your loan can be approved. Multiple hard credit inquiries can affect your credit score to a large extent.

What are the factors that do not make impact your credit score?

Surprisingly, our credit score is only determined by your payments and credit report information. Factors such your monthly income, alma mater, and family history are not considered.

How can you get your credit score for free?

• Today, a large number of credit card companies offer free credit score. You can obtain your number from a bank or credit card issuer.
• Pay attention to your FICO. This score is considered to be the actual credit score. However, not all credit scores are calculated using FICO.
• There are many tools online that are great and allow you to see free credit score. These tools and services may money through advertisements from credit companies.

How does free credit score aid in maintaining your score?

• If you know your credit score, it gives you a good idea of where the status of your credit is heading.
• You will have fair idea of how much you have to pay in interest before seeking a loan and whether you should actually go ahead with your application.

Do free credit score services charge a fee?

Most companies that offer free credit do not charge a fee. However, there are some companies that charge for this service. The fee may be a very nominal amount.

What are the ways to improve your credit score?

• There are common cases where there may be mistakes or errors in your credit report. Fix these as soon as possible.
• If you notice any unpaid bills, make sure that you pay them off immediately.
• Keep tab on your future payments. Set reminders so that they do not slip off your mind and pay off the bill right away. Automating the process will effectively help.
• Even if you have a high credit score, refrain of using it as it will affect your credit score.