Free credit scores guide

Credit scores affect whether you can get credit and what you pay for credit cards, auto loans, mortgages and other kinds of credit. For most kinds of credit scores, higher scores mean you are more likely to be approved and pay a lower interest rate on new credit.

Want to rent an apartment? Without good scores, your apartment application may be turned down by the landlord. Your credit scores also may determine how big a deposit you will have to pay for telephone, electricity or natural gas service.

Lenders look at your credit score all the time. They look at your scores when deciding, for example, whether to change your interest rate or credit limit on a credit card, or whether to send you an offer through the mail. Having good credit scores makes your financial dealings a lot easier and can save you money in lower interest rates. That's why they are a vital part of your financial health.

There are different means of calculating the credit scores. One of the most widely used credit scores are the FICO scores. When lenders talk about "your score," they usually mean the FICO® score developed by Fair Isaac Corporation. It is today's most commonly used scoring system.

The credit scores are the basis for most of the financial investments and tools available to debtors today. Without a good credit score the chances of getting beneficial loans like home loans, educational loans, etc are minimized. It also reduces the chances of getting employment, as most employers do check the credit rating before hiring. Also poor credit scores keep on adding to harassment and constant nagging from lenders to pay back their debts.