A credit score represents the creditworthiness of a customer. A good credit score is beneficial for availing credit and loan facilities. This score can determine a person’s ability to pay back loan or borrowed money from a financial institution. This also helps in maintaining a positive credit report. A credit score of anything above 700 is considered good, according to Experian credit agency. Well, let’s take a tour of the free credit report system.
The different types of free credit report annual scoring models in the USA:
Credit scoring models give a quantifiable unit to the free credit score system. The annual credit report free of costs and hassles need to be on the basis of perfect analysis and assessment. The different models are as follows:
- The fair, Isaac and company or the fico model, introduced in 1989, is used by numerous banks and credit institutions and is based on the three credit bureaus, namely the Experian, Equifax and Transunion. The fico score vary according to the bureau providing the information.
- Nextgen risk score is a scoring model for analyzing consumer credit risk. This scoring system has been designed by fico only. The range of next gen score is between 150 and 950.
- Fico sbss helps to analyze credit applicants of small business, applying to loans which are less than 0.35 million $.
- Vantage score, entered market in 2006 as a business competition of fico, introduced by the three bureaus. Its set up differs from the fico score model.
The three bureaus run the website www.annualcreditreport.com , which provides free report every once in 12 months; however credit scores from these three agencies are not obtained. For non-fico scores as an add-up, the usual fee is approximately 8$. Well, not much guys, considering the benefits it carry. You can try being a trustworthy person, can’t you? Cheers.