Your Credit Report

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a formula based on the information in your credit report. It is intended to predict, for example, how likely you are to repay your debts. Keep in mind that credit scores may vary depending on which scoring services prepared them and which of the many different credit scoring formulas is being used.

If you are interested in knowing your credit score, you can order one for a small fee from a number of outlets. If a lender uses a credit score to set the interest rate on your loan or credit card, the lender, in most cases, must inform you of the score and related information free of charge. The lender also must provide similar information if the score is used in a decision to deny credit.

Understand what factors are likely to influence your score. For most major scoring models, whether you repay loans on time is generally the most significant factor that influences your score. That's why it is important to pay your bills on time.

Another key component of your credit score is how much you currently owe on each account compared to the original loan amount or credit limit for a credit card.

Additional factors include how long you have had your current loans and credit cards, the types of credit accounts you have, and how many recent "credit inquiries" you have (these are requests by lenders for your credit report or score in response to your applications for new credit).

Your credit score will not be lowered when you order your own credit report.

Understand how to improve your credit reports and scores. In addition to making sure that your credit reports are accurate, it is important to pay your loans and other bills on time. Even if you fell into trouble in the past, you can rebuild your credit Read more>>