| If you are a little confused about your credit report and | | | | few hundred charged on them. Credit bureaus assume |
| credit score there are a few things you should know | | | | that someone who charges up to their limit is a higher |
| to help you understand them better. TO begin there | | | | credit risk. |
| are three major credit reporting agencies in the U.S. | | | | The last third of your report is based on several small |
| and several smaller, localized ones. Each of the three | | | | factors. Home ownership will give you a higher score |
| major bureaus has different reporting habits and your | | | | than renting and if you have several previous |
| score will vary from one to the other. Items that are | | | | addresses this will count against you also. Requests |
| reported, or not reported, will also differ on each one. | | | | for credit reflect in this area as well as payments on |
| This is why it is so important that you check each | | | | secured credit or medical bills. |
| report for inaccuracies. | | | | Every financial transaction you make will have a direct |
| Your credit score is based on several factors. One | | | | effect on your credit score - good or bad. That is why |
| third of your report will be based on your payment | | | | it is so important to review your credit report once, |
| history alone. Late payments, non payments and credit | | | | preferably twice, a year for mistakes or inaccurate |
| collection agencies dramatically reduce your score in | | | | reporting. With this in mind, check your report often, |
| this area. One third of your report will be based on | | | | pay your bills on time and keep your charges below |
| your debt to available credit ratio. If you have 5 credit | | | | the limit and you should have no problems with your |
| cards that are maxed to the limit you will have a lower | | | | credit report or score. |
| score than someone with two cards that have only a | | | | |