Fun Facts about Free Credit Scores, Part 2

Our previous conversation about free credit scores was extremely interesting.

Thank you!

More questions have arisen.

It's no problem. The Free Online Credit Score Oracle is happy to help you. Let's talk again.

Where do I get a credit score? Can I order it online?

When you're born, the doctor tries to loan you money. Your initial credit score gets calculated based on how much you are willing to accept and how quickly you pay it back.

I don't remember that transaction.

Most people don't remember. That's how we got the 'credit crisis'. Many borrowers completely forgot to pay back their long-standing baby debts. That became a crisis because doctors refused to continue lending money. Millions of babies were born without a credit rating.

How can I find out what my credit score is?

Look online for a veritable plethora of sites that provide free credit reports.

OK. What if my credit score is really bad? Is there a way to improve it?

Sure.

Well? Will you tell me how to accomplish that?

Sorry. I was looking up my free credit report online.

How in the world can I improve my credit score?

The first thing to do is repay all your debts.

OK. Check. Got it. Repay all my debts.

Next: borrow more money.

OK... wait a minute! You lost me there. Why do I have to borrow more money?

It's very simple. Lenders will not loan you money unless you have a history of borrowing money and paying it back on time. You have to prove you don't actually need the money.

So... I can borrow money if I already have the money.

Now you're catching on. Have another cookie.

How much do I owe you for these virtual cookies?

They are free credit report cookies. No charge.

Thanks!

However, in 30 days we will begin charging you a monthly fee for cookies whether you eat them or not. We will send you free cookie recipes as well as discount coupons for chocolate milk. You can cancel at any time.

All of a sudden I'm not so hungry.

Are you sure? It's a great way to build your credit score.

OK. Maybe I should finance a few cookies.

Now you're catching on. By borrowing money and paying it back, your credit score increases.

Are there any other ways to increase my credit score?

Sure. You can open accounts with Cable TV providers, telephone companies, and credit card services.

How will that help?

These organizations report your payment history to the online credit bureaus. The credit bureaus calculate your free online credit score based on information provided to them. Your entire score isn't based on whether you pay your cable bill on time, but it will help.

That's a great bit of information for those of us trying to build a credit rating.

So, you got helpful guidance and free cookies. Life is good. Go forth and build thy credit score.