What is a Credit Report?

Your personal credit report contains details about your financial behavior and identification information. From this report, a credit score is calculated.

Credit scores represent your creditworthiness and indicate the likelihood that you will repay a debt as agreed. They are widely used by lenders, who may determine the premiums you are paying and your interest rate from your credit score.

How Can I Get a Copy of My Credit Report?

To obtain the free credit report that you are entitled to under federal law, you must go to http://www.annualcreditreport.com. There, you can get your credit report from all three credit reporting agencies — Experian, Equifax and TransUnion — once every 12 months.

What Can I Do to Improve My Credit Scores?

A credit score reflects credit payment patterns over time, with more emphasis on recent information. Ways to improve a credit score generally include the following:

• Pay your bills on time. Delinquent payments and collections can have a major negative impact on a credit score.
• Keep balances low on credit cards and other "revolving credit." High outstanding debt can affect a credit score.
• Apply for and open new credit accounts only as needed. Don’t open accounts just to have a better credit mix. It probably won’t improve your credit score.
• Pay off debt rather than moving it around. Also, don’t close unused cards as a short-term strategy to improve your credit score. Owing the same amount but having fewer open accounts may lower your credit score.