Free Credit Checks

Free credit checks, though tempting, should be evaluated thoroughly before use. Though the typical charge for a full credit check is minimal, many people would prefer to receive a complimentary copy. For those of you who have been denied credit in the last six months, you qualify for a free copy of your credit history from the creditor who denied you.

Where to Find Free Credit Checks

For the rest of you looking to take advantage of free credit checks, the internet can be a tremendous resource for you. Many credit reporting agencies offer complimentary reports from one major credit bureau; either Equifax, TransUnion or Experian. This data will give you a basic understanding of where you are on the FICO scale.

While having too many credit card accounts open can hurt your score, not having enough credit history can also result in a low FICO score. If you have just recently opened your first credit card, you are likely to start off with a score in the 500s. This score is not high enough to apply for large loans.

Focus On Major Accounts

As you continue to build credit by opening accounts and paying balances on time, you will see a gradual improvement in your score. Ultimately you are working towards a score in the 700s. Your mortgage and student loans are the two most important accounts to pay on time. These can also result in the most damage to your score if you default on those payments.