Frequently Asked Questions about credit

 A: A credit score is a numerical value that is generated based on an individuals credit history.  

Q: How is the credit score determined?

A: The score is based on a formula that factors your payment history, lenth of time that accounts have been established, available credit ratio -  to used credit ratio and other factor such as the number of times additional credit was requested (inquires).

Q: What is considered a good credit score?                                                   

A: Credit scores range between 350 - 850 points.  Higher scores are prefered by lenders and those that screen credit reports.  At this time a good credit score is 700 and above 750 points is considered excellent.

Q: When would my credit score be requested?

A: Credit scores are typically used for major purchases that require financing (home,car,), credit card issuers, department stores, insurance companies and employers.

Q: How can I obtain my credit score?

A: See Credit Score Tab. (above)  

Q: Why should I order all 3 of my credit reports and scores?

A: The bureau's that provide credit reports are using information submitted to them by  creditors.  As creditors receive payments from customers, they report the account activity to the bureau's of their choice.  Some creditors report to all 3 credit bureau's and some creditors may only report to a regional bureau.  When information is not reported to all 3 bureau's, you may not have the credit report or score that a lender will  use. You should order all 3 of your credit scores to have a complete picture of your credit profile.

Q: How fast can I raise my credit score?

A: The score is a result of historical data. Quick fixes often fail to provide lasting credit improvement.  By using tips and services within this site you will increase your credit score. By using credit monitoring services, you will always know your score and will be alerted when changes impact your credit score. 

Q: Can credit repair companies improve my credit?

A: There's no guarantee.  Many of the functions that are required to correct your credit report and your credit score can be done by monitoring your credit and spending habits. By improving the ways that you manage money, a greater portion of your money can be directed towards paying off negative accounts.  This will help increase your credit score and credit report.  

Q: How does credit monitoring help build my credit score?

A: By using a credit monitoring service you have greater access to your credit report and your credit score.  As information is updated on your credit profile, your credit score changes.  The updates and alerts that you will receive are rewarding, as knowledge becomes power.  You will be able to use knowledge to your advantage because if the information is negative, you can act very quickly.  If the information is good, you feel better and you might start seeking your desired loan request. Your credit score will increase faster because you are alerted sooner by the credit monitoring service. 

                                                     
Q: Will following these credit tips really work to improve my credit score?

A: Yes, the credit tips offered within this site will help increase your credit score.  When used properly, most of these credit tips will help increase your credit score at a rapid pace.  While there's not a single solution to build your credit report and score, if you combine the credit building strategies and credit tips provided by Credit Score 1st  your credit score will improve.   

Q: How can I learn more about improving my credit? 


A:  Visit the Credit Score 1st Article Library, titled "Credit Articles" at the top of this page.

Q:  Where can I find books about building good credit?

A:  You'll find lots of books on building good credit and improving credit scores at our Bookstore.