I HAVE HOW MANY?

By now, we've all seen the commercial. It's the one with the clean cut, overly caffeinated, young guy who's just beaming about his credit report/credit score. And oddly enough, he wants to give you a free copy of yours'. First of all, be aware that there is this little "enrollment" thing you have to do before getting your score. Secondly, did you know you actually have 3 different scores? Yep, 'sure do. When a lender talks to you about "your score", it is generally the middle of the three. The three companies (repositories) that compile your credit are Experian (their scoring is the famous, or if you have missed some payment, infamous, FICO), Trans Union (Classic) and Equifax (they have Beacon). If you are now about to nod off in utter fascination, just remember that these companies have a lot to do with how you borrow money, and at what rate. They don't all get the exact same information from creditors, so each of the scores can be vastly different. For instance, that Visa you forgot to pay may only report to Experian. So your FICO score will be much lower than your other two. But what if your creditors in good standing only report to one of the three? Well, then two of your scores will be falsely lower. Below are five general things that can help you with your scores. If you are interested in other ways you can bump up your scores without spending the next year on phone "forget" with The Big Three, drop me an email. I'd be happy to give you some tips.

5 Factors That Decide Your Credit Score

Credit scores range between 200 and 850. Scores above 680 are considered desirable for obtaining a mortgage. These factors will affect your score.

1. Your payment history. Whether you paid credit card obligations on time.

2. How much you owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.

3. The length of your credit history. In general, the longer the better.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.

5. The types of credit you use. Generally, it's desirable to have more than one type of credit—installment loans, credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score go to myfico.com.

As always, I'm interested in what you think. Please feel free to respond.