Credit Scores Matter
Credit scores are used by lenders, insurers, utility companies, landlords and employers to evaluate your financial responsibility. They are reported by each of the three major credit bureaus; i.e., TRW (Experian), Equifax and Trans-Union and are calculated using a "scorecard" where you receive points for certain things. Credit scores usually range from 300 to 850 and vary per bureau due to different emphasis being placed on different items. Creditors and lenders who view your credit report do not see how your score was calculated, only the final scores.
Items That Affect Your Credit Scores
How to Improve Your Credit Scores
The first steps to improving your credit score is to check your credit report for errors, maintain at least three open accounts below the maximum credit line and make all your payments on time. To get started, go to www.AnnualCreditReport.com (see below) and order your FREE Credit Report today. Although the FREE credit report does not include your credit scores, it’s a great tool for monitoring your credit history!
AnnualCreditReport.com is a centralized service for consumers to request free annual credit reports. It was created by the three nationwide consumer credit reporting companies - Equifax, Experian and TransUnion and is the only service authorized by Equifax, Experian and TransUnion for this purpose.