What is Credit Score and how to check yours FREE

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When you apply for a loan, an internet service, or a lease, companies will check your credit rating to make decisions on your application. Service providers, landlords, and lenders take your credit score very seriously and so should you. Not knowing your credit score may have a major impact on your life.

What is Credit Score

Credit Score is your risk score. The higher your credit score number, the fewer chances you will not pay back the money borrowed. Lower credit score means you will get higher rates. Riskier customers pay more for services if they get credit at all.

Your credit score is calculated by using data from three major credit reporting agencies: Equifax, Experian, and TransUnion. There are two credit score models: FICO and VantageScore. Today we will focus on VantageScore only.

VantageScore Ranges Explained

No Credit: Under 300

You just arrived in America, and your credit score is not established yet. Don`t worry, over time you will build a strong credit record. Work with your local lender to learn how you could get started.

Very Poor: 300-549

You are considered a very risky borrower. Maybe you have declared bankruptcy or foreclosed on your house in the past. You may have trouble to get new credit, get a lot of “your application was denied” messages, and have a hard time to qualify for a lease. Most lenders and banks will avoid doing business with you. Utility companies may require a higher security deposit on equipment or service contracts.

Poor: 550-649

You are a somewhat risky borrower. You may have some dings on your credit history, but no major catastrophes. Lenders may extend credit on your application, but you may not get the best rates.

Fair: 650-699

You are an average borrower. You are most likely will get approved for credit but will not get the most competitive rates on your loan.

Good: 700-749

You are a financially responsible borrower. You manage your money well, keep your credit card balances low, and you pay on time. Most lenders, utilities, landlords, and insurers will offer you competitive rates and more likely approve your applications.

Excellent: 750-850

You are a low-risk borrower and are a prime candidate for lowest interest rates on new credit. Any company will be delighted to do business with you. You might be able to negotiate very competitive rates with lenders.

How to Check Your Credit Score for Free

By now you understand the importance of strong credit history and high credit score. You also might be very curious about your credit score rating. There are two ways you can check your credit for FREE:

  • Credit Karmaoffers no obligation, completely Free VantageScore report. It takes less than five minutes to register and get your credit score number. Your personalized profile will include insights about which factors impacted your credit rating the most and tips on how to improve your score. The downside of the Credit Karma report is no details on credit history will be attached to your score.
  • Annual Credit Report
    is the only legitimate, authorized, and free online resource to get access to your entire credit history. The website allows us to get one free credit report, per person, per year, from each of the three credit reporting agencies. Please note, the credit history will exclude your credit score.

Your Credit History Tips:

  • Download, save and print your credit history and credit score. Review and check it for accuracy
  • Contact credit reporting agencies if you see any inconsistency or errors on your credit history
  • Follow free recommendations on your Credit Karma profile to start improving your score
  • Check your credit score every 45-60 days on Credit Carma.

My Story.

My first experience with credit score and its importance dates back to 2005. When I needed money to attend school, and my student loan application was denied since my credit score was 420.

Soon I learned, I had to find a co-signer with a very high credit rating to back up my application. My spouse agreed to co-sign, and a few weeks later I was approved for Stafford Federal Loan.

From the start, I wanted to repay my debt fast. To make it happened, I got a part-time job at Clarks Shoes Store. When I started school, my daughter was 2.5 months old, and it was challenging to go to school, raise a child and work at the same time.

During three years of school, I continued borrowing funds each semester and repaying them within 2-4 months in full. As a sum, in three years I borrowed and repaid nearly $20,000. By the time I graduated my score was in mid-700 range.

In the past 13 years, I took many intentional steps to improve my credit score. Today my FICO credit score is 820, which is considered low-risk and excellent credit.


Regardless of how low your credit score is today you have an opportunity to improve it. The first step is to learn what is your credit score today. The next step is to commit to take actions and build your credit history. The great news is, with the right approach, over time, your credit rating will improve dramatically.

In next posts, we will discuss specific steps and strategies you can take to build your credit rating quickly. Strong credit will allow you to take advantage of the lowest interest rates and save thousands of dollars on financing costs.

Copyright @ Logio Solutions LLC 2021. All rights reserved.

Questions to Readers:

  • What is your credit score?
  • how your current credit score affects your ability to get credit and your life?

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