Understand Your Credit Report Score

After you have your credit score its important to figure out exactly what the heck your score means and what the information on your credit report says.

1. Below is a graph which shows what factors are used to determine your credit score.

2. Next find out what your exact credit score is. The higher the score the better your credit is.

3. Then take a look at all the late payments and information listed on your credit report. No credit bureau is perfect so you need to check for mistakes that may have been made. In the event you find one, make sure to make a copy of your report and send a letter regarding the correction. If you are correct they will change it.

4. Now that you have gotten your score and checked for errors its time to eliminate any credit accounts you do not use. Do not do it all at once, instead spread out the closing of accounts over several months.

5. After you have done steps 1-4 make sure to do the same with a copy of your credit report from all the current credit reporting agencies and go on to Step 4 below

Step 1: Obtain your credit report (opens in new window)
Step 2: Review some common credit terms
Step 3: Read how to evaluate your credit report
Step 4: Review some tips you can use
Step 5: Learn some ways to budget your money
Step 6: Tell a Friend and help them save money