Anytime you want to make a very large purchase your credit score comes into play. Applying for any type of loan, some jobs, buying a new car, all these occurrences will require a credit check. Therefore it’s a good thing to know your credit score and what factors determine it.

To get a credit score, you should use multiple credit bureaus. The three top used are Transunion, Equifax, and Experian. You are entitled to at least one free credit report a year. If you have been denied a loan or job because of a bad credit report you are also entitled to a free credit report. You should always check your credit report once a year at least. Using three credit bureaus allows you the most accurate information to get a credit score. Each company will give you a free credit report every 12 months.

Your credit score is decided by a mathematical formula using the information on your credit report in comparison with millions of other people. The final number is extremely accurate in how likely you are to pay your bills. The higher the number the better you look and the lower your interest rates.

Each of the credit bureaus uses a different method to get a credit score. Therefore, each bureau could give you a different score. However, if you control what you can to maintain good credit, then all those scores will be high ones.

One popular formula method is the FICO method. The FICO numbers generally run from three hundred to eight hundred fifty with three hundred being very undesirable. A score of around seven hundred twenty is reported to get you the best interest rates on a mortgage.

However, there could be some future changes in how these companies get credit scores. The universal method is being discussed so that your credit score remains the same no matter where you get it. This new method is called VantageScore. The three credit bureaus got together and decided on this universal formula. The numbers run from five hundred one to nine hundred ninety and have a letter score as well. A score of five hundred would be an F while a score of nine hundred would net you an A.

Factors that determine your credit report are prompt payments, and how much you owe versus how much credit you have. Even getting a new credit card can benefit you in the long run, though you will get a short term negative. A long-term negative, however, is applying for too many new credit cards.

When looking to get your credit score, be careful which companies you use over the net. Transunion, Equifax, and Experian are reported as solid bureaus, but not every advertised way to get a free credit report is honest. However, your credit score is determined, whether, by 3 methods or, eventually, a single universal method, it’s always a good idea to keep a high one. The best way to do that keeps your payments prompt and check your credit report often.