Know Your Credit Score
And What the Heck is a Credit Score, Anyway?
A credit score is a number. It is calculated by a credit bureau (Equifax, Experian or TransUnion), a lender, such as a bank or credit union, or a company to measure your credit worthiness — whether or not to lend you money and the likelihood it will be repaid.

Many lenders use a system called a FICO score. It’s a point system based on your credit history. Not all lenders use the FICO system; there are others and scores for a single individual can vary from system to system.

The point is, everyone with a credit record has a credit score and you need to know what yours is. Why? Because if you know your score, you’ve probably checked your credit record for accuracy. Credit records can and often do contain mistakes, inaccuracies or old entries that are no longer pertinent. The problem is this: bad information usually shows up only when you’re applying for credit or a loan, such as a mortgage. That’s not the time to begin bringing your credit record up to date. The time to do that is now!

The Fair and Accurate Credit Transactions (FACT) Act requires the three credit bureaus to provide free annual credit reports to all individuals who request them. Request yours online at https://www.annualcreditreport.com.

And, for your own financial good, do it soon!