Free Credit Report and Score

All financial transactions of consumers are collected by credit reporting agencies. From the collected information, a credit score can be calculated for every consumer. Both credit report and score provided by free credit report and score government approved agencies can be used to check the credit worthiness of a particular consumer.

The credit worthiness of consumers based on credit report and score are influenced by many factors. In fact, reports and scores may vary depending on the credit reporting agency and the scoring system. Below are the factors that affect your credit report and score.

Payment History

Payment history accounts for 35% on your credit score. This means that you will have a better result from the free credit report and score government approved agencies if you pay your bills and debts on time. You can also improve your report and score if you pay off long-standing debts like student debts over newer debts.


Debt plays a major role in improving or downgrading your report and score. In fact, it contributes 30% of your credit score. There are different types of debts that are reflected on your credit report which include revolving debt, installment debt, and open debt. Revolving debt refers to your credit card and retail card debts while installment debts refer to all types of fixed payments like auto loans. Lastly, open debts refer to debts that must be paid in full every month. Examples are variety cards that consumers require.

Time in File

This refers to how long you have a file in credit reporting agencies. Thus the longer you have a credit report, the more stable the results you get from the free credit report and score government-approved agencies unless indicated that you have bad debts in your report.

Diversity of Accounts

The credit report and score can also be affected by the diversity of accounts. This means that you should have a diversity of accounts from savings, checking, and credit accounts. You can also benefit from having different kinds of loans as long as you make on time payments. Having a number of accounts can yield good results from free credit report and score government approved agencies because it indicates that you have the ability to manage different account types as well as your finance.  These factors heavily influence your credit report and score. It is important that you follow these tips in order to improve your score to get better terms with financial institutions.