There are three major reporting companies: Equifax, Experian, and TransUnion. These companies track financial information from public records and a wide variety of financial sources, mortgage lenders, and collection agencies. Your credit report is a comprehensive list of this information which each one of these companies compiles from your creditors and other public records. A credit score is a numerical computation that is based on the information contained in each of your credit reports. Each company calculates their scores independently and, since they each have their own proprietary formula, your actual score may vary from company to company.
• Payment History
• Outstanding Debt
• Length of Financial History
• Amount of New Credit
• Types of Credit Used
• Check your credit reports at least once per year and contact the credit reporting agencies to correct anything that’s wrong.
• Don’t lower your credit scores by opening some accounts in rapid succession.
• If you are rate shopping for a mortgage or car loan, try to do it within a short period. Credit scoring agencies try to distinguish between comparison rate shopping for one mortgage or car loan, and looking for multiple new credit lines or credit cards.
• Closing an account doesn’t make it go away on your credit report. By closing an account, you lower the overall amount of credit you have, and this
can negatively impact your score.
• Pay your bills on time – those hefty late payment fees add up, and late payments can really hurt your credit score.
It’s very important to check your credit report regularly and correct any inaccurate information. Get a copy of your free credit reports from each credit reporting agency annually and take the time necessary to correct any problems you find. Many issues can be addressed through the companies’ websites after you have obtained the credit reports. Or follow the instructions on the sites and handle it in writing. If you don’t have the time to order your credit reports and write to the various agencies, the help of inquiry removal or credit repair companies may be for you. Most inquiry removal and credit repair services have years of experience repairing credit and will be able to help you spend a fraction of the time on this time-consuming endeavor.
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