What is Free Credit Score and How to Get It?

The current market condition during the post-global recession has badly hit the personal lives of people and the chance of acquiring a credit. Financial institutions or credit card companies become so careful in offering or granting personal loans to common people, that it becomes nerve-wrecking to get a loan application sanctioned. Bringing a solution to such complicated situation, US Federal Trade Commission or FTC has set a new rule of offering free credit score report to all the citizens of America once in a year.

This free credit score report program is designed to help both the financial institutions, money lenders, credit card companies etc and borrower. This free credit score report contains the complete credit history of an individual which a bank can access if the individual applies for a loan or credit balance. If the bank finds the credit history fair enough to accept the loan application, then permission will be granted easily. But in case the free credit score shows that the individual has already taken a number of loans which are still in due status, then it is more likely that the bank will not easily allow the credit limit.

In this way, there will be a fair trade between people and companies. A person with good score will not face any trouble in getting a loan sanctioned and someone with a bad score has to be cautious in his future planning. This particular financial program ensures that no party is at risk, be it the lender or the borrower. Now, let us come to the topic how to get a free credit score.

The United States Government’s Federal Trade Commission has granted authorization to three particular chief commercial bureaus - Equifax, Experian, and TransUnion; to provide this free credit score report to every citizen once in 12 months. Although it is not mandatory to send each and every citizen the report by post or via e-mail, but the order is to provide a citizen his or her credit score on request. Anytime a person can apply for this credit score from any of the three previously mentioned agencies, absolutely at free of cost.

But once you get a free credit score, you cannot ask for the same before 12 months is over. In case you are in hurry or applying for a bank loan which asks to submit your latest updated score card, then you go online and get it from other resources.