Understanding Credit

Credit Reports

Credit reports are like your transcripts on which creditors report your payment behaviors. There are three major agencies that track all of your credit history.

  1. Equifax
  2. Experian
  3. TransUnion

You are allowed to request a free credit report once a year. The only official website where you can do so is Annual Credit Report.

Credit Scores

If your credit report is like a transcript, credit scores are like the GPA. If your report is good, your score will be too. Any new credit you are seeking uses your score to decide your credit-worthiness. Creditors use your credit score to determine the interest rate they are willing to extend to you.

Federal Reserve provides great tips on improving your credit score.