Your credit score and credit report are two important things a lender uses to evaluate your creditworthiness. They are huge factors in their determination to give you a new loan or not and the kind of terms they may apply on the loan. When thinking of getting a new loan, therefore, it is highly advisable that you look into these and try to improve your credit score to get the best possible terms.
Your credit report contains your personal and financial history including previous loans and how you handled them, credit card records, and other similar transactions, as gathered by the three leading credit reporting agencies, TransUnion, Experian and Equifax. The data from this report are then used to calculate your credit score, which appears in a credit score scale.
Where your score ranks in this range reflects how creditworthy you are deemed to be. The closer your score is to the top of the range, the higher your creditworthiness is, and you would be in a better position to get the kind of financing you seek.
It is your legal right to receive a copy of your credit report free of charge on a yearly basis. Your credit score though is a little more difficult to obtain. Fortunately there are websites where you can get you credit score for free. These would include the websites of the top three credit reporting bureaus which allows to you to get your credit score free, but just for one time.
What you should remember though is that most lending companies use the Fair Isaac Corporation scale or FICO scale in their scoring system but there are other available systems like Vantage Score and PLUS Score that may be used by different companies. So it is advisable that you also look into the correlation of the scores of these different systems to give you a better understanding of your credit score regardless of which scoring system was used.
To learn more info on credit score range, please go to http://mycreditscorerangeguide.com/