Credit Reports & Scores...

What Is a Credit Report?

A credit bureau compiles a document detailing your credit history, credit inquiries and facts about your credit, debt and payment history. Your credit file includes:

• Public record information such as bankruptcies, judgments, foreclosure and tax liens
• Overdue debt information from collection agencies
• Credit inquiries made by lenders, insurance companies and government agencies

You can request one free credit report per year from each of the nationwide credit rating bureaus; Equifax®, Experian and TransUnion®.

Experian - 1-888-397-3742

Equifax - 1-800-685-1111

TransUnion - 1-800-888-4213

Alert! Certain companies advertise that they offer free credit reports, but if you dig a little deeper, you might find there are associated costs.


What is a Credit Score?

A credit score is usually a three-digit number that lenders use to rate your payment and credit history. A score is used to help determine whether or not you get a loan, mortgage, car, credit card. etc., and what interest rate you will pay on that loan. Credit scores range from approximately 300 to 850. Generally, the higher your credit score, the better.


What Determines My Credit Score?

The most well-known credit scoring system was developed by Fair Isaac Corporation and is called the FICO® score.

The FICO®scoring system uses information from the three major credit bureaus, taking the following five components into account:

Item	Percent (approximately)
Payment history Amounts owed Length of credit history New credit Types of credit used	35% 30% 15% 10% 10%

(figures and chart taken from MyFico.com)