My my own careful scientific measurements I have empirically concluded that 99% of TV commercials are advertising “free” credit reports.  It seems like during the current recession our entire economy is based on dollar value menus, Snuggies and these websites with their low-budget ads and questionable business practices.

Good Debtbeats know that The Fair Credit Reporting Act (FCRA) requires each of the big three credit reporting firms (Equifax, Experian, and TransUnion) give you a free copy of your credit report once a year. Reviewing your credit report multiples times a year is  a must, since inaccuracies in your credit file are notoriously hard to clear and can cost you a low interest rate ona loan, a job, or a place to live.

But even more important than the details of your credit report is your credit score, the numerical value assigned to your credit worthiness.  The higher you score, the better off you are. And because so many credit decisions are made by computer, your score may be the final determiner of your financial life.  To be precise, each credit rating company has their own system, so you actually have several credit scores.

The catch has always been that even though companies have to give you your credit report, getting your score was more of a hassle. In the past, getting your actual scores has usually required a payment to these bureaus, or participation in a credit monitoring program with a monthly fee.

Now, a handful of companies are launching services that give you at peek at your credit scores free of charge. These players hope to make money indirectly from advertising or other services.  These websites, Credit.com, CreditKarma.com and Quizzle.com also provide insight into the main components of your score and let you know what you can do to improve them. Also fun to see is how your credit stacks up against others.

A good credit report will lead to a good credit score.  However, as companies adjust their scoring models, it’s good to know what steps you can take to maximize this rating.  The payoff will come with lower interest rates and no surprises when you need your credit to represent you to the world.

via the Wall Street Journal – WSJ.com.

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