You applied for a loan recently and now they informed you that your application got denied! Of course, you want to know why. Well, the answer may be in a three digit number known as the credit score. The higher the number the more favorable creditors view you. Or, in other words, the lower the number the more difficult it will be for you to qualify for loans, credit cards, or any other credit you may need. And even if you qualify, the interest rate they charge you will be higher with a lower credit score. If you do get denied, or the interest rate they charge you is much higher than you anticipated, you should check to see if your credit report is the source of the problem.
In essence, your credit score reflects the data in your credit report. And the Fair Credit Reporting Act dictates that any organization that turns down your application for credit, employment or insurance, has to provide you with your credit report as long as you request it within 60 days of being notified of the rejection.
There are three nationwide consumer reporting companies (Equifax, Experian and TransUnion) that compile credit reports. You can purchase a copy of your credit report from any of these three agencies, or from other companies that offer credit reports as part of a larger package. You should not pay more than $15 for your report.
But, before you go purchase your credit report, you need to realize that you have the legal right to one free copy of your credit report every 12 months from each of the three consumer reporting firms. This report does not give you your score, but it does show you how many times you were late paying your bills. If you want your actual score you will have to pay for it, but it usually is a small amount (