What You Need to Know About Credit Reports and Scores
Credit Bureaus
The three major credit bureaus that collect consumer financial data are Equifax, Experian and TransUnion. You can purchase your credit report, credit score and monitoring services directly from these companies. Before purchasing reports or scores, bear in mind that:
- You may be entitled to a free report.
- The score provided by the credit bureau is not identical to the score a lender will calculate when you apply for credit.
Credit Reports
You are legally entitled to a free copy of your credit report annually from each credit bureau. They can be easily ordered through AnnualCreditReport.com, the only site authorized by the Federal Trade Commission (FTC). You are also legally entitled to a free copy of your report if you are denied credit based on information in the report. The credit bureau that supplied the report to the lender must also make a copy available to you upon your request.
Credit Scores
Fair Isaac Corp. is a company that provides credit risk scoring models to a majority of lenders. Although a few other models are also in use, FICO® is the most commonly used and is a major factor in most credit decisions. Your score has serious impact on:
- Your interest rate
- How much credit is extended to you
- Other terms such as down payment required, payment terms, loan terms
Scores are affected by the factors below*:
* myfico.com, 07/08Financial Calculators and Other Resources
These sites have been extremely useful to us:
Bankrate.com is one of the best resources for calculators and personal finance education available.
Myfico.com contains excellent information on individual FICO® scores and consumer credit in general.
The Federal Trade Commission has an extensive consumer protection section that includes information about credit as well as identity theft. View the FTC's identity theft brochure here >
The Identity Theft Resource Center is a nationally respected clearinghouse for prevention information and victim assistance.
The information provided above is illustrative in nature and is not intended to replace qualified professional advice.