at credit reports to make prescreened credit offers,
these inquiries about your credit history are not
counted as applications for credit.
How many and what types of credit accounts do
you have? Many credit-scoring models consider
the number and type of credit accounts you have.
A mix of installment loans and credit cards may
improve your score. However, too many finance
company accounts or credit cards might hurt your
score.
To learn more about credit scoring, see the Federal
Trade Commission’s website, Facts for Consumers
at www.ftc.gov/bcp/edu/pubs/consumer/credit/
cre24.shtm.
4. Learn the legal steps you must take to
improve your credit report.
The Federal Trade Commission’s “Building a Better
Credit Report” (www.ftc.gov/bcp/edu/pubs/
consumer/credit/cre03.shtm) has information on cor-
recting errors in your report, tips on dealing with debt
and avoiding scams—and more.
5. Beware of credit-repair scams.
Sometimes doing it yourself is the best way to repair
your credit. The Federal Trade
Commission’s “Credit
Repair: How to Help
Yourself” (www.ftc.
gov/bcp/
edu/pubs/
consumer/
credit/
cre13.shtm)
explains
how you can
improve your
creditworthi-
ness and lists
legitimate
resources for
low-cost or no-
cost help.
1. Get copies of your credit report —then make
sure the information is correct.
Go to www.annualcreditreport.com. This is the only
authorized online source for a free credit report.
Under federal law, you can get a free report from each
of the three national credit reporting companies every
12 months.
You can also call 877-322-8228 or complete the Annual
Credit Report Request Form at www.ftc.gov/bcp/
edu/resources/forms/requestformfinal.pdf and mail
it to Annual Credit Report Request Service, P.O. Box
105281, Atlanta, GA 30348-5281.
2. Pay your bills on time.
One of the most important things you can do to
improve your credit score is pay your bills by the due
date. You can set up automatic payments from your
bank account to help you pay on time, but be sure you
have enough money in your account to avoid over-
draft fees.
3. Understand how your credit score is
determined.
Your credit score is usually based on the answers to
these questions:
Do you pay your bills on time? The answer to
this question is very important. If you have paid
bills late, have had an account referred to a collec-
tion agency, or have ever declared bankruptcy, this
history will show up in your credit report.
What is your outstanding debt? Many scoring
models compare the amount of debt you have and
your credit limits. If the amount you owe is close
to your credit limit, it is likely to have a negative
effect on your score.
How long is your credit history? A short credit
history may have a negative effect on your score,
but a short history can be offset by other factors,
such as timely payments and low balances.
Have you applied for new credit recently? If you
have applied for too many new accounts recently,
that may negatively affect your score. However, if
you request a copy of your own credit report, or
creditors are monitoring your account or looking
5 Tips for Improving Your Credit Score
The Federal Reserve Board
For more consumer information, please visit the Board of Governors of the Federal Reserve System online at www.federalreserve.gov/consumerinfo.
0109
at credit reports to make prescreened credit offers,
these inquiries about your credit history are not
counted as applications for credit.
How many and what types of credit accounts do
you have? Many credit-scoring models consider
the number and type of credit accounts you have.
A mix of installment loans and credit cards may
improve your score. However, too many finance
company accounts or credit cards might hurt your
score.
To learn more about credit scoring, see the Federal
Trade Commission’s website, Facts for Consumers
at www.ftc.gov/bcp/edu/pubs/consumer/credit/
cre24.shtm.
4. Learn the legal steps you must take to
improve your credit report.
The Federal Trade Commission’s “Building a Better
Credit Report” (www.ftc.gov/bcp/edu/pubs/
consumer/credit/cre03.shtm) has information on cor-
recting errors in your report, tips on dealing with debt
and avoiding scams—and more.
5. Beware of credit-repair scams.
Sometimes doing it yourself is the best way to repair
your credit. The Federal Trade
Commission’s “Credit
Repair: How to Help
Yourself” (www.ftc.
gov/bcp/
edu/pubs/
consumer/
credit/
cre13.shtm)
explains
how you can
improve your
creditworthi-
ness and lists
legitimate
resources for
low-cost or no-
cost help.
1. Get copies of your credit report —then make
sure the information is correct.
Go to www.annualcreditreport.com. This is the only
authorized online source for a free credit report.
Under federal law, you can get a free report from each
of the three national credit reporting companies every
12 months.
You can also call 877-322-8228 or complete the Annual
Credit Report Request Form at www.ftc.gov/bcp/
edu/resources/forms/requestformfinal.pdf and mail
it to Annual Credit Report Request Service, P.O. Box
105281, Atlanta, GA 30348-5281.
2. Pay your bills on time.
One of the most important things you can do to
improve your credit score is pay your bills by the due
date. You can set up automatic payments from your
bank account to help you pay on time, but be sure you
have enough money in your account to avoid over-
draft fees.
3. Understand how your credit score is
determined.
Your credit score is usually based on the answers to
these questions:
Do you pay your bills on time? The answer to
this question is very important. If you have paid
bills late, have had an account referred to a collec-
tion agency, or have ever declared bankruptcy, this
history will show up in your credit report.
What is your outstanding debt? Many scoring
models compare the amount of debt you have and
your credit limits. If the amount you owe is close
to your credit limit, it is likely to have a negative
effect on your score.
How long is your credit history? A short credit
history may have a negative effect on your score,
but a short history can be offset by other factors,
such as timely payments and low balances.
Have you applied for new credit recently? If you
have applied for too many new accounts recently,
that may negatively affect your score. However, if
you request a copy of your own credit report, or
creditors are monitoring your account or looking
5 Tips for Improving Your Credit Score
The Federal Reserve Board
For more consumer information, please visit the Board of Governors of the Federal Reserve System online at www.federalreserve.gov/consumerinfo.
0109
