FICO Scores and Credit Reports
The CRAs (Consumer Reporting Agencies) collect and sell information on where you live and work, all of your bill paying activity, and whether you have filed bankruptcy or been arrested or sued. The major CRAs are Transunion, Experian and Equifax. Ever lender out there is going to pull your credit report when determining whether or not to lend you money.
Your FICO score is a scoring method that compresses your credit history into a single number. This score is used to determine the probability that you pay your bills. Get more info on how FICO scores are computed.
You can ensure a high FICO score and positive credit report by paying your bills timely every month and by never over-extending yourself. In addition, it is important that you know what is on your credit report before you apply so that you can fix your credit by removing any negative and/or outdated info. Getting a copy of your credit report regularly is important.