Keeping Score with Your Credit

When you were back in school everything you did was graded, and for most of us grades were very important. Now that you are grown up some grades are still just important. I am referring to your credit score. Just as the quality of your school work was graded you credit history is also graded. Credit card companies, lending institutions, and even many employers use your credit score to determine your worthiness. The most commonly used credit score is the FICO. FICO scores range for 300 to 850 with 725 being considered as average. 
 
Everyone needs to be very serious when it comes to their credit and strive to establish and maintain a high credit score. Credit scores have become the single most widely used piece of information to determine whether or not loans or credit card applications are approved. 
 
Your credit score is based upon what is contained in your credit report. Unfortunately, credit reports are often known to contain errors. According to a study by the Public Interest Research Groups errors occur in as many as 79 percent of credit reports.

It is recommended that you check your credit report once per year. If you have plans to make a major purchase, such as a home you should check your credit report at least six months in advance. This will allow you the opportunity to fix errors or take necessary steps to increase your credit score. 
 
Once you notify a credit bureau about an error in your report they have thirty days in which to conduct an investigation. They will get in contact with the creditor or lender to verify whether the information is correct. If verification isn't made, or if the creditor does not respond, the erroneous information will be removed from your credit report.