What is needed for a credit check

What is a free credit check?

By: John Kiernan, Personal Finance Editor

Credit check is generally used to mean one of three things:

1. Getting an anonymous credit score estimate (e.g. the credit score estimator on this page);
2. Checking your actual credit score; or
3. Reviewing your credit report(s)

Each type of credit check serves a distinct, yet important purpose. And at the end of the day, you should try to take full advantage of all three. Here’s what each type of free credit check is all about:

• Credit Score Check - If you want to see your actual credit score, you can check it for free on WalletHub – the only site that offers free daily updates.


• Anonymous Credit Estimate – Performing a casual credit check by using a credit estimator like the one on this page is a great way to get a general sense of where you stand. It’s especially useful if you have a small-scale financial decision – such as applying for a credit card – in your near future.


• Credit Report Review – Reviewing your credit reports should be a regular practice. It allows you to find and dispute errors, which are all too common. And it gives you the chance to make sure there are no signs of identity theft on your files.

You can get your latest TransUnion credit report from WalletHub, the only site with free reports and scores that are updated daily. And you can check your Experian and Equifax reports for free through annualcreditreport.com.

Of the three options, checking your actual credit score is by far the most accurate way to see how good your credit is. But free credit scores are not all created equal.

Here are the best sites for a free credit check:

To learn more about the top places for a free credit check, check out our comparisons of 2018’s best credit score sites, best credit report sites and best credit monitoring services.

Why is my credit standing important?

By: John Kiernan, Personal Finance Editor

Your credit standing is important because it can either save or cost you a lot of money. It can also create or deny you opportunities, such as buying a home or landing your dream job. That’s because decision–makers, from creditors and lenders to landlords and employers, use credit data to evaluate applicants. They use it to determine whether you’re eligible for approval. And it’s also the basis for your interest rates, insurance premiums, credit lines, etc.

How does your actual credit score fit into all of this? Well, your credit score is basically your credit report in number form, providing a shorthand way to express how much risk you pose to lenders. Responsible habits as a borrower – particularly paying your bills on time – leads to positive information in your major credit reports. Positive credit report info leads to a higher credit score. And a higher credit score leads to savings.

For example, a 100-point difference in your score would cost you roughly $40,000 in interest over the life of a 30-year, $300,000 home loan, according to a Fair Isaac Corporation report.

So make sure to take action if a free credit-score simulator or your actual credit score indicates the need for credit improvement. To see what you should focus on, check out the Credit Analysis portion of your free WalletHub account.

Why use this credit score estimator?

By: John Kiernan, Personal Finance Editor

This credit score estimator gives you a general sense of your credit standing. And it does so for free, without requiring any personal information. With a credit score estimate, you’ll be able to focus your search for a credit card or loan. As a result, this could help you avoid wasting time or applying for an offer you’re unlikely to be approved for.

This credit simulator also is useful in that it gives you a sense of where your credit should be, based on your general consumer profile. Plus, if your actual credit score differs significantly from what this free online credit check indicates it should be, that could be a sign of a problem.

Of course, no credit score estimator will be as accurate as checking your actual credit score. And even some free credit score sites aren’t that useful because they don’t update their scores more than once per week or month. WalletHub is the only site with free credit scores and reports that are updated daily.

How do I determine my exact credit score?

By: John Kiernan, Personal Finance Editor

You can check your latest credit score for free on WalletHub – the only site that offers free credit scores and credit reports that are updated on a daily basis. Although we believe that WalletHub is the best option for a variety of reasons, it’s not the only credit-score provider in town. This article will give you a sense of how some of the most notable alternatives stack up against WalletHub.

Finally, it’s worth noting that there is no one “real” credit score. You’ll never know what type of model a given lender will use to evaluate you. So you shouldn’t get too worried about checking a certain type.

What goes into my credit score?

By: John Kiernan, Personal Finance Editor

The specifics differ from credit score to credit score. But all scores are based on the information in our three major credit reports: those from TransUnion, Equifax and Experian. So as long as you make sure positive information is flowing into these reports and regularly review them for accuracy, your credit score will be in good shape no matter what recipe is used.

With that being said, VantageScore and FICO credit scores are the most common. And you can find a breakdown of their ingredients below. The categorization differs slightly, but each major factor has pretty much the same weight.

For more info, check out WalletHub’s guide on how credit scores are calculated.