How to Know Your Credit Rating?

How to find out credit rating for free in the United States? It is worth knowing it at least in order to track whether you have credit card debt or whether you are listed in collection agencies. In addition, knowing your credit rating, you can roughly imagine whether you will receive good interest on the same auto loan.

So, the easiest way is to register on a credit karma. Registration is completely free, you just need to have a SSN (social security number) and, of course, have an open credit card. But keep in mind that if you have just opened your first credit card, information about this will not appear immediately, but within 1-2 months. So, on this credit karma, you can track your full credit report in two agencies – TransUnion and Equifax.

Unfortunately, your credit rating information may differ from them. Why this is happening is not very clear. In addition to the rating itself, you can see your credit card utilization (i.e. how much credit you use), the length of your credit history and other factors that affect your credit rating. Credit card information is updated every 7 days. It is a quick and easy way even if you are going to use credit karma for debt consolidation.

Some banks, for example, Discover, American Express, Bank Of America, also provide you with the opportunity to find out your credit rating, if you have a credit card from this bank. The bank rating is also different from the credit card rating. Such a “swing” can probably be explained by the fact that this very rating is calculated according to different formulas.

You can also exercise your right to receive a free credit report. This is possible every 12 months. You can get a report from 3 companies on this website. In addition to Equifax and TransUnion, you can make a request to Experian. The specified site is recommended by the government as the only authorized site for such reports. Such a report will be useful for you when taking out a loan for a car, a house, and even when renting a home (because realtors will kindly provide you with it for $ 20-50 per person).

It is worth mentioning that a credit report and a credit rating are not the same thing. A credit rating is a number and a report is a document. A credit report is a broader concept and is not required as often. The credit rating allows you to periodically monitor your financial condition. For “home use”, it is enough to know the approximate level of your credit rating, and the ability to get a report is left to really important circumstances.