Credit Reports

Your credit score, or FICO score, is a three-digit number that represents a statistical analysis of your creditworthiness. Your credit score is based on the information in your credit report, which is usually sourced from the three major credit bureaus: Experian, Equifax, and Transunion. Since each of the three credit bureaus collects and analyzes information independently, they may give you scores that differ, sometimes widely. But in general, the factors that make your score go down will be the same at all three bureaus.

The information in your credit report reflects your bill-paying history and debt profile. If you are late on a payment by 30, 60, or 90 days, that will be noted in a credit report. If you default on a loan or a credit card, or if a bank has to "charge off" a debt that you incurred, those will be noted on the credit report as well. All of these factors will be analyzed when determining your three digit credit score. Typically, factors that would be analyzed in determining your score would be things like:

• Any late payments (30 days or more)
• Defaults, charge-offs or non-payments
• Your level of debt
• What type of credit accounts you have (i.e., revolving)
• Length of your credit history
• Number of "hard inquiries" on your account
• Whether you have made a lot of credit applications recently.

If you have a history of on-time payments, and you still experience a decline in your credit rating, check to see if any of the following apply to you:

Are you carrying high balances on your credit cards? Your balance-to-limit ratio is weighted heavily in your score and if you are maxing out your cards, that could be the problem. If you carry forward a balance at all, it's considered advisable to use less than 75% of your overall available credit.

Did you recently apply for a lot of new cards? Numerous hard inquiries can have a negative impact on your score.

If you want to buy a car, apply for a mortgage, or get a credit card, you probably know that the lender will be pulling your credit score. Credit scores, or FICO scores, are one of the primary tools used by lenders to try to assess the likelihood of your default on a loan, and whether you will make timely payments if they extend credit to you.

What you might not realize is that plenty of other people are looking at your credit score besides creditors. There are plenty of other situations in which your credit score can play an important part in decisions that affect your life. Insurance companies, landlords, utility companies, and even employers are checking credit scores these days. A credit check has become a routine part of a renter's background check in many places. There are also creditors and companies who pull your credit scores for "promotional purposes" that is, they want to see if they should market their services to you.

In fact, anyone with a "legitimate business need" can gain access to your credit report, including government agencies, child support enforcement agencies, and anyone who wants to be in business with you. With the exception of employers, who require your written consent to obtain a copy of your credit report, these people can pull a copy of your credit report without your permission or even without your knowledge. These inquiries then become part of your credit report but they are called "soft inquiries." "Hard inquiries" are inquiries that come from a lender who is inquiring for the specific purpose of extending you credit. Numerous hard inquiries can have a negative impact on your score, but soft inquiries have no impact whatsoever.

Even if you are not in the market for a car or a home loan, it's important to know your credit reporting rights, as well as what is on your report, and who is looking at it. You can also consult the federal Fair Credit Reporting Act (FCRA), which safeguards your privacy by restricting who has access to the sensitive information in your credit report.

Credit scores, or FICO scores, are one of the primary tools used by lenders to try to assess the likelihood of your default on a loan, and whether you will make timely payments if they extend credit to you. When you apply for a mortgage loan, one of the main things a prospective lender will look...

When you walk into a dealership to buy a car, or approach your bank for auto financing, chances are they will be pulling your credit score to see what kind of borrower you are before they approve a loan, or quote you an interest rate. Credit scores, or FICO scores, are one of the primary tools...

Your credit score, or FICO score, is a three-digit number that represents a statistical analysis of your creditworthiness. Your credit score is based on the information in your credit report, which is usually sourced from the three major credit bureaus. Using this score, lenders will determine...

There are three major consumer credit reporting bureaus Equifax, Experian and TransUnion. The credit bureaus provide an important financial service for lenders and consumers by collecting and reporting consumer credit information. Lenders, credit card companies, insurers, landlords and utility...

Wondering how your credit score measures up against the national average? You're not alone. Many Americans do not even know their own score, much less how it compares to other borrowers. But your credit score falls into one of the following broad categories. A score of 750-840 is generally...

Your credit report is a record of information collected from your creditors, which summarizes your credit history. When you apply for the credit, your bank, credit card company or mortgage lender uses your credit report to evaluate the potential risk of lending money to you.

In your credit...

Your credit report contains highly sensitive information, including your social security number, your past addresses, and even the names and addresses of your past employers. Legally, the credit bureaus are only allowed to give this information to certain requestors:

1) A creditor or banker who...

Since 2005, the federal Fair Credit Reporting Act (FCRA) has mandated that consumers are entitled to one free credit report a year from the three major credit bureaus. To comply with this new law, the three major credit bureaus Experian, Equifax and Transunion pooled their resources to create...