Credit Report

What is a credit report?

  • A  credit report provides you with all of the information in your credit file (“credit history”) maintained by a credit bureau that is provided about you by a third party, such as a lender. Generally, a credit report will reflect your credit pattern of behavior for a period of seven years. A credit report will also include information on everyone who has received a report about you from the reporting company within a certain period of time, depending on the bureau (“inquiries”).
  • There are 3 credit bureaus in this country, Equifax, Experian, and TransUnion. You may request a free report once every 12 months from each of the three bureaus.
  • Adopt a review system that staggers reviewing one report every four months (January, May, September). Bundling the reports and reviewing them on the same day restricts your free access for twelve months.

Is a credit report the same as a credit score?

  • No. A credit score is a number that reflect your credit risk level, with a higher number indicating lower risk.  It is generated through statistical models using elements from your credit report.  Your score is not physically stored as a part of the credit file. Rather, it is typically generated at the time a lender requests your credit report, and is then included with the report viewed by creditors.
  • Your credit score changes as your credit report changes.  For example, payment updates or a new account could cause your score to fluctuate.  As well, many different credit scores are used by the financial services industry.  Your score may be different from lender to lender or from car loan to mortgage loan depending on the type of credit scoring model used.
  • It’s important to note that even though your score changes as your credit report changes, each bureau may have a different credit score for you.  This is due to the fact that there are more than 1,000 proprietary formulas being used to calculate credit scores.
  • It is not uncommon for college graduates with long-term student loan debt for their credit score to decrease when the loans become active debt after the deferment period ends.

Why are credit reports and credit scores used?

  • Credit reports help a credit grantor decide whether to grant you credit based on your credit payment history. If a lender finds what it considers excessive inquiries, it may reject your credit application.  Lenders are free to determine their own guidelines for what constitutes excessive inquiries. Don’t give out your credit information unless you are ready to apply for credit. 
  • Credit scores help lenders assess risk more fairly because they are consistent and objective.  Consumers also benefit from this method.  No matter who you are as a person, your credit score only reflects your likelihood to repay debt responsibly, based on your past credit history and current credit status.

How do you request a credit report?

  • The best way to request a FREE credit report is through The 3 credit bureaus links are contained on this website.  You can also request a free annual credit report by phone or mail and it will be mailed within 15 days.
  • Requesting a credit score involves a nominal processing fee and is not necessary every time you request a credit report. 

low to high credit scale

Credit Score

FICOTM is an acronym for the Fair Isaac Corporation and refers to the credit scoring system used in more than 90% of lending decisions in the United States. The FICO score is calculated by applying statistical methods, developed by the corporation, to gather information on one’s credit file.  To learn more about the FICOTM scoring system go to

How is a credit score calculated? How to improve your score?
35% Payment History
Do you pay your bills on time every time?      Set up payment reminders.
Do you pay more than the minimum? Pay more than the minimum.
How many accounts show no late payments?  Pay your bills on time every time.
30% Amounts Owed (Debt)
How much do you owe on your accounts? Pay off debt rather than moving it around.
What is the ratio between your debt and line of credit? Reduce the amount of debt you owe.
15% Length of Credit History
How long have you had credit?  It takes time to improve credit scores. Plan the work – work the plan = stay committed.
10% New Credit
How many new accounts do you have? Open new credit accounts only as needed.
How long has it been since you opened a new account? Open new credit accounts only as needed.
10% Types of Credit Used
What kinds of credit accounts do you have? Manage all credit accounts responsibly.
How many of each kind do you have?   Manage all credit accounts responsibly.

Your Credit and You

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