Get Your Free FICO Score

You can get this from Equifax and any of the other two credit referencing agencies.

You can get free FICO credit report even more frequently under the following circumstances:

• If you are unemployed and looking for job
• If you are denied a loan or any other credit facility or unable to open a bank account because of your FICO credit score
• If you are turned down for insurance
• If you will not be employed because of a perceived poor credit score.

You can ask for to get free FICO score on you within 60 days from when you are notified of any of the above, to ensure the information held about you is right. You may also need to see your credit report to prevent identity theft. Your FICO credit score is your passport to free yourself from debts and attain financial bliss.

But what is FICO Score , some may ask.

What is FICO Score?

FICO is an acronym formed from the letters of its founder, the Fair Isaac Corporation. It is the best known way of assessing one's credit worthiness in the United States of America.

By applying a number or score to your financial and debt management attitude and standing via a complex statistical process, a final number or score is reached which roughly expresses your credit worthiness. This is then used by banks and other financial institutions in reaching decisions on whether to lend you money or not, the rate of interest to apply to you, or request you deposit more collateral securities before you get a loan. Other things being equal the higher your score the better interest rate you can obtain.

It is a number between 400 and 800 that ranks credit worthiness according to a proprietary algorithm invented by the company, with 400 being worst and 800 being best. Other companies now have their own variations.

Though the details of the algorithms are closely held trade secrets, over the decades many people have reverse engineered several of the important factors. Any late payments will lower your score and the more of them and the later they are, the more heavily the score is affected. The total amount of debt carried per month is another element. A less important factor is the number of credit cards and credit checks performed.

Any score below about 620 is considered marginal and below 580 is decidedly poor. 720 and above is very good to excellent. A range between 620 and 720 represents a kind of grey area, where items other than your FICO will play a more significant role in loan decisions.

Prevailing interest rates in general, the current demand for loans, the general economy and other factors have a heavy influence on the willingness of lenders to lend and at what rate.

Also, the entire lending industry has undergone at least two significant shifts in the last 20 years. With the increasing use of computers and modern financial techniques, underwriting loans is done very differently today. Also, not surprisingly, the Internet has shifted finance to a very different mode of working.

Even with all these changes, though - or, perhaps in part because of them - the FICO score remains a primary tool for lenders. It may not determine the final decision, but it definitely influences the 'first cut' when presented with a stack of applications to approve or disapprove. Getting your free FICO score and working on it will ensure you are on the right side of the equation.

Where to Get Your Free FICO Score Report

You can get your free FICO score credit report held on you by any of the credit referencing agencies. There are three credit referencing companies in the US from whom you can request your credit report. There are:

• Equifax
• Experian

• TransUnion

You may not be given a report configured using the original FICO criteria or statistical derivations. Each credit reporting agency has developed its own version of the FICO credit score to reduce cost on their part. Instead, from Transunion for example, you may get a Transrisk report, and Score X from Experian, all collective called FAKO scores by financial houses, and used exactly the same way they would use the FICO scores.

To get free FICO score from any or all of the above bodies, you can apply through the government sanctioned credit agency, AnnualCreditReport.com, which is only available to ISPs in the United States.You can call them on 1-877-322-8228

Remember that by applying to get free FICO credit score, you will be approached by credit card companies for new card sign ups!

How to Improve Your FICO Score

Now your free FICO score has arrived. It does not seems to be exactly how you want it. Is there an option? What can you do to improve your score?

Fortunately for those who have financially slipped, there are alternatives. Though your free FICO score may show your credit score to be low you nonetheless have several options. The first thing to do is set into motion a plan to improve your score.

As you work to remove those outstanding overdue debts - either through paying them off or negotiating with the lender - your FICO will gradually improve. The age of 30 day past due, 60 day past due (or longer) late payments is a factor in calculating your FICO.

At the same time, you can shop around for lenders willing to take a higher risk by lending you money. The downside is those loans almost always carry a higher interest rate. Your best approach is to try to forego borrowing for as long as possible while you work to improve your debt situation. Your FICO will follow suit.

Since a free FICO score is closely is more or less your credit report, review how you can improve your Free FICO Score and credit report in detail here. For UK residents, see how you can get free credit report in the UK