Best Websites to check Credit Score Online for free are mentioned here. Financial Markets play a very pivotal role in allocation of funds to prospective investment fields. Financial Markets act as a significant link between the households (savers) and business firms (investors). This ensures mobilisation of funds by directing funds gathered via savings into their most productive investment opportunity.
In this way, financial markets act as what is known as ‘financial intermediaries’. Because of the interaction between savers and borrowers, the price of the financial asset being traded gets determined by the market forces of demand and supply. Both the savers and investors are able to save much of their valuable time because financial markets enlighten them with the crucial information regarding the securities being traded.
Classification of financial markets
Financial Markets can further be classified into 2 categories: Money Market and Capital Market.
1. Money Market
Money market is the market for financial instruments like Treasury Bills, Commercial Paper, Call Money, Certificate of Deposits that offer higher liquidity (as their maturity is upto 1 year). These instruments are short term debt instruments with minimum risk of default.
2. Capital Market
Capital market is the market for medium term and long term financial instruments like shares, debentures and bonds. These securities are less liquid as compared to money market instruments because they have a maturity period of more than 1 year.
Importance of credit score
The reason why lenders are so skeptical about lending their funds is primarily ‘Fear’. Fear that the borrowers may default on payment of interests or principal amount or maybe both. Fear that maybe they don’t receive timely repayments of amount they lent out. Here is where the importance of credit scores and your credit history in your financial life comes into play. Thanks to the websites that enable free credit score checking. This problem is resolved readily today. You can easily check your credit score and see if you are eligible for getting a loan or not.
Difference between Credit Score and Credit Report
Now, people often get confused between the terms ‘Credit Report’ and ‘Credit Score’. It is very important to understand the difference between the two.
What is a Credit Report?
Your ‘Credit Report’ simply contains information regarding current credit, bankruptcies, balances, personal identifying information etc.
What is a Credit Score?
Credit score is a 3 digit number (generally ranging between 300 to 850) that is assigned to you based on the information provided in your credit report. Even insurance companies make use use of credit scores to determine the amount of premium they must charge from their clients.
How credit score is generated?
Most importantly, Credit Scores are generated automatically with the help of computer application and thus help save a lot of time and energy that is wasted in going through the entire credit report. It makes the process faster and quicker thereby improving efficiency. The evaluation of the creditworthiness of an individual then becomes quite easier.
What are the factors that affects your credit score?
Your credit score is generated on the basis of the following vital factors:
- Previous Credit Performance
- Current level of indebtedness
- Time period for which credit has been in use
- Pursuit of new Credit
Henry Wheeler Shaw, an American humorist, has rightly put it,
“Debt is like any other trap, easy to get into, but hard enough to get out of.”
10 Best Websites to check Credit Score Online for free
Here are the best websites for checking your credit score online for free mentioned below:
1. Credit Karma
Founded on 8th March, 2007, Credit Karma is an American personal finance company that offers you free access to your credit score as well as credit reports. The catch is that with Credit Karma, you can check your scores at any point of time, irrespective of your location and you don’t even have to pay a penny to do so. All you need to do is simply register yourself on this website and then you will be alarmed whenever there is an important change in your credit reports.
You can seek expert advice on how to improve your credit scores, get personalized recommendations for a wiser use of your credit and a lot more. It is a very secure website that makes your privacy their top concern. Interestingly, Credit Karma has come up with a phone app for iPhone OS and Android.
Founded by Doug Lebda, LendingTree is America’s leading online platform connecting borrowers and lenders and helping them find the best deals be it on auto loans, mortgage loans, credit cars or insurance. LendingTree helps you check and monitor your credit score for free. It even enables comparison of mortgage rates, ratings and reviews about lenders, thereby helping you choose the loan that completely suits you and is in accordance with your needs.
LendingTree makes use of the most recent version of credit score: Vantage Score 3. It offers you financial help as well. If you visit its website, you will find out that it offers a lot of products like Home Refinance, Credit Cards, Personal Loan, Home purchase, Student loans, Debt policy, Insurance, Credit Repair, Credit/Debt Analyzer, Banking products, business loans and so on.
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3. Credit Sesame
Credit Sesame is another top rated financial wellness company based in U.S. It was founded by Adrian Nazari in 2010. You don’t need your credit card for viewing your credit score. You just need to enter a valid e-mail Id to get started.
It acts as your personal credit manager and offers free credit monitoring services. It helps you find the right personal loan/auto loan/business loan that is best for you and even helps you select the credit card that is perfect for you.
Another globally acclaimed website that allows you to check your credit score for free is Quizzle. This company was founded in 2008 and has its headquarters located in Michigan, United States.
It also offers its paid service ‘Quizzle Pro’, where you can avail the benefits of a monthly credit report, 24*7 credit monitoring by paying a nominal fee of $8/month.
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It is an American financial company that was founded on 5th August, 2013. You are required to sign up and provide essential details like your name, Date of birth, residential address etc. in order to avail WalletHub’s services that include checking daily credit scores, credit and savings monitoring as well as recommendations on improving your credit scores.
It uses TransUnion credit bureau to generate your credit score as well as credit reports. WalletHub also assists you in finding a credit card that is just right for you.
On paisabazaar.com, you just need to sign up, provide some details like your full name, Date of birth, PIN code, PAN, e-mail address and mobile number. Then you can easily gain access to your free credit report from Cibil/Equifax/Experian/Highmark bureau.
Nextly, on the basis of this credit report generated, your credit score will be calculated automatically.
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Founded in 1995, Credit.com is another website that offers you a platform to check your credit score completely for free. For many, the term ‘Credit’ can be very confusing. So, to overcome this obstacle, Credit.com offers expert information regarding what is a good credit score, how is it calculated, how can you improve your score, why monitoring your credit is important and a lot of other essential queries are addressed here.
Safety of you data is their top priority. For this purpose, they have even partnered with leading security providers across the globe.
8. Nerd Wallet
Founded in 2009, Nerd Wallet is a personal finance company with its headquarters in California, United States. It aids you in comparing innumerable options and then choosing your best credit card, savings account, online broker, mortgage and personal loan as well.
This website offers expert information which helps you decipher the toughest of concepts. You can become a Nerd Wallet member simply by signing up and then you can easily view your credit scores and get expert recommendations also.
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9. Capital One
Founded by Richard Fairbank and Nigel Morris, CapitalOne.com assists you in meeting your various financial needs like getting the right loan, the right credit card, the right checking or savings account etc. ‘Creditwise’ from CapitalOne allows you to check your credit score for free.
A very interesting feature offered by it is its ‘Simulator’ that makes you aware about the various positive and negative events that can affect your credit score. You can have all your queries answered by giving a read to a full list of FAQ’s available on the website.
Chase.com helps you choose from everything that is right for you ranging from credit cards, savings account, car buying advice to channelizing your funds to the right investment avenue. ‘Chase Journey’ allows you to check your credit score for free, get credit alerts as well as weekly score updates.
Do not undermine the importance of credit scores. They value a lot while applying for a home loan or auto loan or buying an insurance cover.
Hope my readers find this article useful. Thank you.
Author: Manasvi Nagpal