Do all credit reports include a credit score?

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Do all credit reports include a credit score?
1 year ago
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When you apply for a credit card, mortgage loan, automobile loan, or any other type of credit, the lender will take a close look at your credit report and credit score. The credit score can be the most important factor in determining whether your loan application is accepted, the amount you will be approved for, and what your interest rate will be. Before you even begin the loan process, you should examine your own credit report. Even if you have always paid your bills promptly, there are sometimes mistakes on the report that you will want to have corrected before you apply for that loan.

Fortunately, it is now easier than ever to obtain your credit report. Under federal law consumers are entitled to one free credit report every year from each of the three national credit-reporting companies. Experian, Equifax, and TransUnion all provide information about obtaining a free report on their websites, or you can go to annualcreditreport.com to order it at no cost.

However, before you order your credit report, it is important to understand that there is a difference between the credit report and the credit score. The credit report is a detailed description of your credit history. It usually includes such information as balances, monthly payments, and payment history of both current and past credit accounts. The credit score is a number that the credit agencies calculate and assign to your credit file based on such factors as the number of late payments, the balance on your accounts, and how often you request credit. It is really this score that lenders will want to see. Your credit score will not be listed on the report unless your order it as an additional option.

It is true that you can obtain the credit report at no cost, but keep in mind that you will most likely have to pay some type of fee for the credit score. When you order directly through annualcreditreport.com, Experian, Equifax, or Transunion, you get the report free, but they will charge you about $8.00 per score. Other companies advertise a free report and score but with strings attached. They automatically enroll you in an ongoing credit monitoring service that regularly tracks your credit. There is usually a short free trial period and then the service costs you about $15.00 per month. It is possible to avoid being charged, but you have to contact the company to cancel before the trial period is over.
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