A good credit score can save you money. A credit report is a broad view of an individual’s credit history. Gives information on whether an individual pays bills on time, the type of credit owned, length of accounts, amount of credit used and if new sources of credit are being sought.

Three national credit bureaus maintain credit reports: Experian, Transunion and Equifax.

Good credit = more money in your pocket

Factors that affect Credit score

1. Payment history (35%): Ability to pay bills on time; affects credit the most.

2. Credit Usage (30%): Amount owed. Keeping credit utilization under 30% is strongly recommended for best credit building. (For example if $10,000 total, then keep credit use under $3000).

Credit Utilization: Utilization of available credit on revolving accounts.

Amount Owed on Installment Loans such as auto loans and Mortgage with set loan term and set amount of payment

3. Age of credit (15%): Also known as length of history; Length of time your revolving accounts have been open and length of installment accounts. It is an average of ALL accounts

4. Type of credit (10%): Credit mix. The different types of credit accounts.

5. Credit Inquiries (10%): Authorization to look up credit. Multiple inquiries negatively affect the credit score. Grouping inquiries within the same month will help to minimize effect on credit score.

Before you develop a plan to fix your credit score, you need to know what is on it.

Check your credit report to know what is on it. Annual Credit Report is a federally approved site that offers a free annual comprehensive credit report. Check your credit report at least annually to stay on top of its content.