| Am I the only one who doesn't understand my credit | | | | different factors have different levels of importance. |
| score? Have you had this thought recently after | | | | For instance, whether or not you have filed bankruptcy |
| checking your credit score? If you have, you're not | | | | or defaulted on a credit card has more importance |
| alone. | | | | than your salary or what job you have. |
| Understanding credit scores -- who gave it to you, | | | | They use this system to assign a score to each |
| how you got yours, and what it means -- can be | | | | factor and compile them together for your overall |
| confusing. Let's look at these questions one-by-one to | | | | score. |
| clear up any questions you may be having. | | | | What does my credit score mean? |
| Who gave me my credit score? | | | | Unfortunately, your report from each of "The Big |
| There are three companies that provide the service of | | | | Three" will be different. They don't follow the same |
| storing and maintaining credit records. These | | | | format and it can be confusing trying to understand |
| companies are not operated by the United States | | | | them. |
| government but are for-profit corporations. | | | | When you first look at your credit report, it will look like |
| The credit reporting agencies (CRAs), known as "The | | | | it is written in a foreign code. It is. But you can figure |
| Big Three" and are Experian, Equifax, and TransUnion. | | | | out this code by finding the "key" that comes with it. |
| These companies do not share information with each | | | | The key will tell you what each number and code |
| other, so your credit score at one company may be | | | | means. It will take a little while, but you can figure it out |
| much worse or much better at another one. | | | | with a little time and patience. |
| What information do these credit reporting agencies | | | | How often should I get a credit report? |
| have about me? | | | | You should get a yearly credit report. With the |
| They collect information about: | | | | increase of identity theft, it is very impossible to keep |
| - Your payment history | | | | an eye on your credit ratings. Only with a credit report |
| - Your employment history | | | | can you see if someone has stolen your identity and is |
| - Your age | | | | running up charges on a credit card that you never |
| - Marital history | | | | applied for. |
| - Your address history | | | | It is also important to have a yearly credit report check |
| - Your salary | | | | to make sure you take care of any credit problems as |
| - Bankruptcy information | | | | they pop up. It is much easier than waiting until you |
| - Judgement and tax lien information | | | | need a loan and then having to tackle a bad credit |
| How does my bank know my credit score? | | | | rating. |
| Banks, finance companies, department stores, taxing | | | | Which CRA should I get a report from? |
| authorities, landlords, and other people who offer credit | | | | All three. Because these CRAs operate independently |
| subscribe to the CRAs. For a fee that is paid to the | | | | and don't share information with each other, you score |
| CRA, they can get reports on anyone who is | | | | could be completely different at all three. A bad credit |
| requesting credit from them. | | | | report may be showing up at one CRA but not at the |
| How did I get my credit score number? | | | | others. It's impossible that you have a good credit |
| The CRAs have a system where they evaluate the | | | | report at all three. |
| information that they have collected on you. The | | | | |