CRAs do not make decisions regarding a consumer's creditworthiness. Rather, the CRA compiles reports of what your file contains and passes that along to the potential credit grantor.

Credit decisions are, in fact, generally made based upon a number of factors that comprise a "score." Inquiries made in connection with your applications for credit may also be a factor in your score. If, for example, you have applied for several credit cards or loans in a short period of time, this may result in a lower score. Inquires made in connection with pre-approved credit offers or those you make yourself should not result in a reduced score.

The practice of credit scoring is widespread and growing. Until recently, consumers have seldom gained access to their credit score and have not been able to learn the factors that went into the scoring. But a new law in California gives mortgage applicants a right to see their credit score (California Civil Code 1785.10, 1785.15-1780.20, SB 1607 in the 2000 legislative session). And the credit industry is voluntarily loosening its grip on the credit score because of legislative and marketplace pressures. To learn more about the topic of credit scoring, see the Federal Trade Commission's (FTC) information at www.ftc.gov/bcp/conline/pubs/credit/scoring.htm. Additional information can be found at the Fair, Isaac and Co. (FICO) web site (www.fairisaac.com). FICO is the leading developer of scoring methodology. The credit score is often called a "FICO."