Learn about credit scores, key scoring factors, and how credit bureaus like Equifax, Experian, and TransUnion assess your creditworthiness. Discover how to access free annual reports, monitor your credit, and ensure report accuracy to improve financial health.

Understanding Credit Scores and the Function of Credit Reporting Agencies

Your credit score indicates your ability to pay off debts, typically ranging from 350 to 800. Higher scores represent lower financial risk. The scoring factors include repayment history (35%), total debt (30%), length of credit history (15%), variety of credit accounts (10%), and recent credit inquiries (10%). Thanks to the FACT Act, consumers can access one free annual credit report from major bureaus. Agencies like Equifax, Experian, and TransUnion play a key role in evaluating creditworthiness and offering services such as score tracking and tenant screening. Always verify your report for accuracy to avoid issues with loan approvals. Discrepancies should be corrected promptly.

Free reports are available at www.annualcreditreport.com. Paid services, including Experian Credit Tracker™, Equifax Complete™, and TransUnion tools, offer ongoing score updates, alerts, and credit monitoring options. If you notice errors or suspect fraud, contact the relevant bureau immediately for resolution.