Learn more about credit, credit reports, the Fair Credit Reporting Act, FICO scores, and other credit issues.

Important Credit Information

Credit Repair: Self Help May Be Best From the Federal Trade Commission (FTC) the Fair Credit Reporting Act (FCRA) - from the FTC FCRA Links and Information - from the FTC

Credit Reports

Under Federal Law, all U.S. citizens are entitled one Free Credit Report every 12 months, from all three nationwide credit reporting agencies: Equifax, Experian and TransUnion. To obtain that free report, you must go to AnnualCreditReport.com. This is the Only Official service authorized by the 3 agencies.

Credit Reporting Agencies

Experian TransUnion

Credit Monitoring

Identity theft is a major problem that we all face. Monitoring your credit file can help alert you to fraudulent activities like when someone tries to get credit in your name - so you can act before serious damage is done.

FICO Scores

Lenders use credit scores such as the FICO to calculate interest rates and credit limits. FICO is a score based on mathematical formula developed by the Fair Isaac Corporation. It is the most widely used score in the U.S.

There are several important determinants of your FICO:

• 35% punctuality of payment in the past
• 30% capacity used, i.e., ratio of current revolving debt (e.g. credit card balances) to total available revolving credit (e.g. credit limits)
• 15% length of credit history
• 10% types of credit used (installment, revolving)
• 10% amount of credit obtained in the recent past

FICO Tips

• Pay your bills on time.
  Delinquent payments and all collections can have a major negative impact on your score.
• If you are having trouble making ends meet
  Contact your creditors or see a credit counselor. This won't improve your score immediately, but as you begin to manage your credit and pay your bills on time, your score will improve over time.
• If you have missed payments
  Get current and remain current. The longer you continue to pay your bills on time, the better your score will be.

Available Credit

• Pay off your debt rather than moving it around.
  The most effective way to improve your score in this area is by paying down all of your revolving credit.
• Keep balances low on credit cards and other "revolving credit".
  Having large amounts of outstanding debt can affect your score negatively.
• Don't close unused credit cards as a short-term strategy to raise your score.
• Don't open credit cards that you don't need just to increase your available credit.