FICO Scores and Your Credit History

When it comes to the world of credit, it's important to know what information is included in your credit report and how it impacts your credit score. If you know how the different parts of your financial history affect your overall credit rating, you'll be in much better stead to take control of your credit and qualify for better interest rates and lower monthly payments on bank loans, mortgages, credit cards, and other accounts.

This website section offers articles to help you learn more about your credit report and score such as:

• What is in your credit report and who uses that information
• What a credit score is and how it impacts your ability to get credit
• How and why you should review and monitor your credit report regularly
• How to order copies of your credit reports and credit scores
• How to improve your credit rating
• How to deal with a negative credit history
• How credit bureaus help consumers with a variety of products and services

All consumers have three credit reports and credit scores

Many consumers don't know that everyone actually has three credit reports, one from each of the nation's three credit bureaus: Equifax, Experian, and TransUnion. Each bureau also calculates a unique credit score for every consumer based on methodology established by Fair Isaac (FICO), the company that pioneered credit risk analysis for the financial services industry. Lenders use your credit score to determine your creditworthiness.

Monitor credit reports to protect credit ratings and watch for identity theft

Keeping track of the information in your credit reports by disputing any incorrect data and reporting any possible fraud or identity theft activity is a necessary part of personal credit management and vital to building a strong credit history and desirable credit score.

By learning the basics of ensuring only correct information is recorded in your reports and by using good credit management skills such as making your payments on time and not opening unnecessary accounts, you'll be able to maintain a strong credit rating and reap the benefits of an excellent credit score.

The Five Parts of Your FICO Score

In order to make sure your credit score is as high as it can be, you need to understand how it is calculated. Drawing from the financial history contained in your credit report, credit scores are based on the FICO method of score analysis and calculated by the Experian, TransUnion, and Equifax, the three credit reporting agencies in the U.S.

Ways to Improve Your Credit Score

Unless you have perfect credit, you’ve probably wondered what steps you can take to improve your credit score. Here are a few ways to do just that:

What Do FICO Scores Mean to You?

Although the concept of a FICO credit score may seem a bit abstract to most consumers, this three-digit score is the primary factor companies use to determine whether or not you can obtain a loan, open a new credit card account, qualify for low insurance rates, rent a house or apartment, and even be hired for a new job. So you can see that your FICO score is a vital element of your financial information; and one you should know as much about as possible to ensure a high credit rating.

What Has the Greatest Impact on Your Credit Score?

As most consumers know, your credit score is what lenders use to determine if you are creditworthy. If you have a high credit score, you'll reap the benefits of attractive offers from banks, mortgage companies, retailers, and credit card companies. If you're credit score is low, however, you might end up paying thousands of dollars more in interest on new accounts, and your monthly payments for a car, home, or credit card may be much higher than if you improved your score.

Should I Get a 3-in-1 Credit Report?

A 3-in-1 credit report includes each individual report from Equifax, TransUnion, and Experian. The most obvious benefit of a 3-in-1 report is the convenience of comparing your entire credit history from each credit bureau at a glance, instead of having to shuffle through three separate reports.

How to get a copy of your credit report

Your credit report is as much a part of your identity as your social security number because it contains all of your financial history since your first opened a credit account. The report is vital to your financial health because credit bureaus use information recorded in your report to calculate your credit score - the all-important number lenders use to determine your creditworthiness.

How to Correct Information on Your Credit Report

Do you know if all of the information in your credit report is correct? If it isn't, you could pay thousands of dollars more in interest on a new mortgage, credit card, or bank loan.

Dealing with Derogatory Credit Information

Dealing with derogatory credit information is not a pleasant task, but it need not keep you from enjoying the benefits of credit card accounts and personal loans. The key to repairing derogatory credit information is to take steps to improve your credit history.

Are free credit reports available?

If you're like many Americans, you know that in the past it was nearly impossible to get a copy of your credit report unless, while making an application for new credit, a lender shared your report with you.

All about TransUnion

As one of the three major credit bureaus, TransUnion keeps track of all consumer credit-related activity in the form of credit reports and credit scores.

All about Experian

There are three national credit bureaus which track consumers' financial information and record it in the form of credit reports and credit scores - Experian is one of these.

All about Equifax

Monitoring Your Credit Report

In terms of your financial standing with potential lenders, mortgage firms, and insurance companies, as well as with future landlords and employers, there's nothing more important than the information in your credit report.

How Do I Monitor My Credit Report?

Do you monitor your credit report regularly? When you consider that the information contained in your report is the basis of your credit score, and that any erroneous information could negatively impact this score, it is wise to look at your credit report on a regular basis.

Credit Reports - Inaccuracies Can Be Expensive