As prospective borrowers become increasingly aware of their credit score, the ability to check one's free credit score is becoming more and more important. Free credit scores are available from a number of sources, offering an overview of an individual's creditworthiness without mandating the use of a credit card or a fee. Without having to purchase a credit score, individuals can use their free credit score to determine creditworthiness for a potential loan, apply for more favorable insurance rates and review credit offers.

Having a free credit score helps an individual save money when applying for a loan. A high credit score may qualify a borrower for more favorable repayment terms and could also help save on the interest they would have to pay, providing an incentive to check their score promptly before loan applications. A free credit score will also alert a borrower on how their current financial decisions are involving their creditworthiness, allowing them to identify transgressions early and take corrective measures.

Obtaining a free credit score will also help reduce the cost of insurance premiums. Insurance companies use credit scores to assess an individual's risk level and help set premiums. A higher credit score can qualify individuals for more favorable rates from some auto, home, and life insurance providers. Before signing up for any