(ARA) - Whether you're in the market for a new home or applying for a loan, before you start looking at neighborhoods, you need to look somewhere else -- at your credit score. A credit score can give you the information you need to negotiate loan terms and bring you one step closer to your dream purchase. The next time you're contemplating a

In general, when people talk about "your score," they're talking about your current FICO score. However, there is no one score used to make decisions about you. This is true because:

Credit scoring is a system used by some creditors to determine whether to give you a loan or credit card. The creditor may examine your past credit history to evaluate how promptly you pay your bills and look at other factors as well, such as the amount of your income, whether you own a home, and how many years you have worked at your job. A

The Fair Credit Reporting Act (FCRA) is intended to ensure the accuracy and fairness of the credit reporting system—essentially the gathering of consumer information by credit bureaus and the sharing of that information with lenders, landlords, insurance companies and others. The law states who may access your credit report and the

Because it is not part of the credit report, a risk score cannot be disputed. Instead, you must address information from the credit report or other sources that affected the score. That information is identified by the risk factor statements, which are generated along with the score at the time it is calculated. The risk factor statements are

Risk scores are available for a service fee from a number of sources. Experian offers risk score services that include a score, an explanation of what most affected it, education about how to improve the score — and therefore your creditworthiness — and a simulator that enables you to see how certain actions could influence the

1. When you get your credit scores, make sure you also learn the highest and lowest scores possible, as well as the most important factors that influenced your scores. These factors can give you an idea of how you can improve your scores.
2. Getting your own credit scores or credit reports won't affect your scores, as long as you order them from

When lenders talk about "your score," they usually mean the FICO® score developed by Fair Isaac Corporation. It is today's most commonly used scoring system. FICO scores range from 300-850, and most people score in the 600s and 700s (higher FICO scores are better). Lenders buy your FICO score from three national credit reporting agencies

It's now easy to get your credit scores to check your financial health. Different sources provide credit scores to consumers via the Internet, telephone or U.S. Mail. For most scores, you will need to pay a small amount. You also will be asked to prove your identity to make sure your financial information isn't given to the wrong person.

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Your credit scores change when new information is reported by your creditors. So your scores will improve over time when you manage your credit responsibly.

Here are some general ways to improve your credit scores:

• Pay your bills on time. Delinquent payments and collections can really hurt your score.
• Keep balances low on credit cards. High

There are many types of credit scores. They are developed by independent companies, credit reporting agencies, and even some lenders. As a rule, the higher the score, the better.

• Each credit reporting agency calculates your score and each score may be different because the credit history each agency has about you may be different. Lenders may

As a rule, credit scores analyze the credit-related information on your credit report. How they do this varies. Since FICO scores are frequently used, here is how these scores assess what is on your credit report.

1. Your payment history – about 35% of a FICO score
   Have you paid your credit accounts on time? Late payments, bankruptcies,
   

Credit scores affect whether you can get credit and what you pay for credit cards, auto loans, mortgages and other kinds of credit. For most kinds of credit scores, higher scores mean you are more likely to be approved and pay a lower interest rate on new credit.

Want to rent an apartment? Without good scores, your apartment application may

Checking your credit reports regularly to be sure they are accurate and error-free is a good ideaand you should do it at least once a year.
In fact, maintaining accurate credit reports is a part of good credit management, which can help to improve your FICO scores over time.
You can order all three of your credit reports with FICO scores at

Learn how to manage your credit score and improve your creditworthiness.

Think of your credit score as a picture of your credit risk.

The presence of a loan finance account can negatively affect your score because they often carry high interest rates (which may hamper your ability to repay), which many lenders view negatively. However, these accounts, when paid on time can also have a positive affect on your score (if the loan helps you to make your payments in a more timely

Absolutely. By cosigning, you are accepting full responsibility for the debt if the other person does not pay as agreed. A cosigned account will appear on both your credit history and the other person's. All loans and credit card accounts that appear on your credit report will impact credit scores.

The presence of a real estate loan that has always been paid on time shows lenders that you have established a strong credit base, and reflects positively on your credit responsibility. The lack of a real estate loan on your credit report does not decrease your score; however, it generally means that your credit score is not as high as it

Credit scores only consider inquiries initiated by the consumer. These include mortgage applications, credit card applications and auto loan applications. Inquiries that don't affect scores include: requests by you to the consumer reporting agency for your personal report, lenders using credit information for account review purposes, lenders

Pulling up your credit report does not affect your credit score because it is not considered as a credit inquiry

Just the opposite is true. A score is a “snapshot” of your risk at a particular point in time. It changes as new information is added to your bank and credit bureau files. Scores change gradually as you change the way you handle credit. For example, past credit problems impact your score less as time passes. Lenders request a

FICO® scores consider a wide range of information on your credit report. However, they do not consider:

Your credit score as reflected on the credit report is a real credit score. The Credit Score Simulator is for educational purposes only. It should not serve as a guide for changing your actual credit score. Instead, use the simulator to better understand the relationship between score factors and credit scores. The simulator allows you to

FICO Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories below. The percentages reflect how important each of the categories is in determining your score.

Yes, and they should relay these factors to you as to reasons why you did or did not receive approval.

No, only applications for credit initiated by the consumer will affect your score. Inquiries into your credit for account review purposes as well as preapproved offers of credit have no effect on credit scores.

Criteria for accepting loans vary by lender. Some lenders will only extend loans to low risk consumers; others accept loans from consumers with a more risky credit history. There are many different risk score models with different scales, so a 720 on one might be good but a 720 might represent high risk in another risk scoring system. That is

It is never a bad idea to work with issuers and lenders to reduce your interest rate. You definitely have more leverage if a credit score puts you in the low risk range. However, because there are many different credit scores, the model used to calculate the score you obtain, and the score itself, may be different than the one the lender uses