What is a credit report and credit score?

A credit report is a report containing information about your identity, credit relationships, some court actions, consumers statements and previous inquiries into that file. Credit reports are compiled by agencies that gather information about your credit relationships known as credit bureaus. Currently there are three major credit bureaus (more info. below).

Credit scoring is a system lenders use to help determine whether to give you credit (car loans, credit cards, home mortgages, etc.) that is closely associated with your credit report. Information about you and your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report(s).

Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points, a credit score, helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments when due.

What if I'm not interested in the free credit score/report offers above?

If the free credit score offers above do not interest you, then you may be interested in 3-in-1 credit file monitoring . 3-in-1 Monitoring makes it easy for you to monitor all 3 of your nationwide credit reports by alerting you within 24 hours of key changes. Credit Watch Gold with Three Bureau Monitoring Identity Theft Protection offers a free 3-in-1 credit report and unlimited Equifax Credit Report™ in addition to 3-in-1 credit file monitoring. You can order Credit Watch Gold with Three Bureau Monitoring online for $12.95 per month (3 month minimum required).

If you prefer to monitor your credit scores, Score Watch^TM offers FICO® credit score monitoring that includes detailed explanations for key score changes. Score Watch makes it easy to target your ideal score, see interest rates you are likely to receive and watch your score trend over time. You can order Score WatchTM online for $9.95 per month (3 month minimum required).

You may also be interested in receiving a copy of all of your three reports. The easiest way to receive a copy of all of your three reports is to order a "three bureau report" (also known as a merged report). A three bureau report simplifies the process, since you will not need to contact each bureau individually. You can order a three bureau credit report online for $29.95 (featured offer). You will also get your TransUnion credit score for free with this offer. Please note that, thanks to a recently passed federal law, consumers are entitled to a free credit report on an annual basis from each of the three credit bureaus.

You can also get unlimited online credit reports from all three credit bureaus and unlimited online credit scores from all three credit bureaus for $14.95 per month (featured offer). Getting all three of your credit reports and all three of your credit scores will give you the most complete picture of your credit standing.

Equifax also offers several online credit scoring products in affiliation with Fair Isaac & Co. (providers of the FICO credit score). These products do not include a free trial and vary in price (single report and score is $15.95).

Why is it important that I obtain a copy of both my credit report and credit score?

Since your credit reports are an important part of many credit scoring systems, it is very important that you make sure that your credit reports are accurate before you submit any type of credit application (including credit cards). Some experts estimate that as much as 50% of credit reports contain at least one inaccuracy. Thus, consumer advocacy groups recommend that you obtain a copy of your credit reports at least once a year to prevent fraud and to insure that your report is accurate.

There are actually three major national credit reporting bureaus or agencies and we recommend that you obtain your credit report and your credit score from EACH of the three major bureaus. Since creditors (i.e. credit card companies, mortgage companies, etc.) do not report your credit history to the same bureaus, each bureau will often contain different information regarding your credit history. For example, some creditors may report to one bureau, while other creditors may report to all three bureaus.

Please note that each bureau will charge you up to $14.95 for your credit report and score. Thanks to a recently enacted federal law, all consumers are entitled to a free credit report on an annual basis from each of the three major credit bureaus. Please note that all consumers still must pay for their credit score, but the three free credit score offers below may be of interest.

What is a good credit score?

Important Consumer Notes! In this section of our site you will find information about your credit score or rating. It is strongly recommended that you know what your credit score is when "shopping for credit cards". A high credit score is often the key to obtaining the most attractive credit cards (a credit score over 700 will increase your likelihood of getting approved for the best credit card rates, benefits, etc.). A high credit score will also help you to obtain the best rates on other types of loans, as well as the lowest insurance rates.

The following graph will give you an idea of how card issuers view your credit score. This is meant only as a general guide- each issuer has their own credit guidelines.