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Your Credit Report and Credit ScoreYour credit report begins the minute you get your first credit card. It begins the minute you decide to build credit history. All your information is instantly added into a computer database. Every time you apply for a credit card, store card, or car loan, information is added to your credit report. There are three credit agency companies that obtain all the same information about you and your credit history. They get it from the finance companies, banks, credit card suppliers, departments stores and other various places that you have done business with. They are Equifax, TransUnion, and Experian. All the information on file about you and your credit history is evaluated and used to determine your credit score. All your credit score does, is tell a lender that your are a high-risk or low-risk prospect to lend money to. The biggest score you will hear about is called a FICO score. It is made up of a mathematical equation that is based on information from your credit report. If you build credit history properly, your FICO score should be higher than 650. Most U.S. consumers score between 300 and 850. The higher the score, the better.
• Level of revolving debt - If you pay off your credit card every month, great! But your credit report may show the last billing statement on recurring bills from revolving debt. Lower your revolving debt at a faster rate to increase your score. • Length of time accounts have been established - The longer your credit history, the lower-risk you are considered, the higher your score. • Shifting balances - If you try to shift your credit card balance from one card to another to make it look like you are paying off debt more thoroughly, you are making a big mistake. It will not improve your credit score. • Too many accounts with balances - If you have a balance on a ton of cards, it is a sign you are less likely to pay your bills if you have some sort of employment disaster. Remember, one card is much easier to manage. • Too many credit inquiries - Don't check your credit score more than twice a year. People who keep checking their credit score are riskier than those who aren't seeking credit. Be careful how often you check your report.
To get your report, you will need to contact one of the three large credit agencies: Equifax Credit Services
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