How many times have you been rejected a car loan, home loan or a credit card owing to reasons which they cleverly prevent from disclosing and cover up with kind and cheerful words like 'thank you for applying' or 'looking forward to serve you in the future?' But let me tell you at this point that the reason which they try so hard to hide is basically your lack of 'credit worthiness' or 'credibility,' which those financial institutions frown upon. You must be wondering why they would doubt 'your' credibility when you do not have any intention to default. Well, the reasons range from your inability to repay your previous car and mortgage loans or their installments on time, or exceeding your credit card bill settlement beyond the due date. All these factors and other previous data are easily available in your credit reports and fully accessible by those financial institutions; hence, they cannot possibly risk the money they owe to their depositors by lending it if they are not satisfied with your credit report history. The question arises: how can you improve or perhaps, test your 'credibility' and check if you meet the criteria defined by your lenders to eventually convince them to grant you your desired loan? The simple technique is to calculate and find out your credit score. Now what is a free credit score you many ask. It is a combination of three digit number based on the data available in your credit report and is calculated by a mathematical formula. This score helps the lenders to decide whether you qualify for the loan you applied for and at what suitable interest rate. The decision is based on your past ability to repay debts, interest and loans. There is no as such defined score that guarantees granting of loans or vouches for a 100% credibility of the borrower, however, a score of 750 and above is considered to be favorable and raises your chances of getting the loan approved. Most of you must be highly worried due to your unsatisfactory credit payment history but let me assure you that there are ways by which you can improve your credit report data and chances of getting a loan. To begin with, you must demand and check your credit report on a regular basis, frequently monitor your own credit and financial situation and calculate your free credit score every one or two months. These simple steps would help to perk up your chances of being portrayed under a favorable light in front of lenders and save you hundreds of dollars when borrowing.