Credit scores and FICO scores
FICO scores are provided by the Fair Isaac Corporation. These scores are intended to depict the likeliness of borrowers and creditors to repay loans or default the same. There is also a similar score called BNI which is used to determine the likelihood of consumers to declare bankruptcy. These scores are available at the FICO website and also can be availed through post. There are three main credit bureaus which make these credit reports. Some of these bureaus also use credit scores provided b FICO in evaluating these reports. These reports are helpful to get potential capability of debtors and consumers to repay loans and debts. But the computation methods of all these agencies are different and hence a variation of 50 points amongst them is common.
How to get your free credit report
For getting the free credit report you can apply to any of the three bureaus for the same. These bureaus are entitled to provide these reports to all citizens of U.S under the FACT act. These reports can be availed online and can also be sent through mail. These reports are updated periodically so that the changes in the payment history can also be reflected on these reports. Credit scores are generated through computation methods. The credit reports are available on an annual basis to all citizens.
Checking credit scores more frequently
Since credit reports are available annually there are restrictions on the frequency at which you can check these reports. More frequent reports can be availed if the time frame between the three bureau reports is extended. This way you can receive at least one report, from either bureau, in every 4 months. It also helps to keep a more frequent check on the credit scores.
Problems faced with credit scores
There are various kinds of problems faced by debtors and borrowers with credit scores. These include misinterpretation and misinformation in the credit reports and credit scores. This can be due to the fault of the credit bureaus or the creditors, who provide information of cleared debts to these bureaus. This misinformation can be compared in the reports of the other two bureaus. If this error is not common then consumers can lodge a complaint against the bureau or the creditor. This helps to keep the correct credit score maintained and also helps to avoid errors in the future on behalf of creditors or bureaus.