Credit scores and credit reports are important when buying a house or a car, and even the insurance for the car, as well as for telephone service and other utilities such as electricity. Companies use your credit score to help predict the likelihood of your paying your payments on time.

The higher your score is, the more likely that your loan request will be approved. It also means that your applications for houses, cars, and apartments may be approved quicker and you may receive offers of lower interest rate also. Deposits for utilities and rates for insurances may also be lower.

Likewise, a lower score may increase the chances of your not being approved and, if you are approved, your interest rates may be appreciably higher.

Several factors go into how your credit scores are determined. These include your payment history (on time, late, etc.), how much you owe (comparing how much you owe versus how much credit you have on your individual accounts), how long you've had a credit history, new credit accounts that have been opened, and other factors.

Some general advice on how to help improve your credit scores and credit reports include:
* Check your credit reports on a regular basis. Review the data in your credit reports for accuracy. Report any errors and important information that is left out to your creditor and the credit reporting agency which provided the report.
* Pay your accounts on time. Don't miss payments. If you have missed payments, it is very important that you catch up as soon as possible and then maintain timely payments.
* Maintain low balances on your credit cards. Reducing the debt is better than moving it to other credit cards.
* Don't apply for credit card accounts that you really don't need.
* It may be more effective to pay off credit card debt than to move it to other credit cards.
* If you have unused credit cards, avoide closing them just before you apply for a new loand.
* Remember that data on your credit report can remain there for a long time.

The three main credit report providers are:
* Equifax - www.equifax.com
* Experian - www.experian.com
* TransUnion - www.transunion.com

Some good references for further investigation of credit scores and credit reports include:
* Federal Trade Commission: Credit Repair: Self Help May Be Best
* Federal Reserve: 5 Tips for Improving Your Credit Score
* Federal Trade Commission: Building a Better Credit Report
* Federal Trade Commission: Need Credit or Insurance? Your Credit Score Helps Determine What You’ll Pay
* Federal Trade Commission: How to Dispute Credit Report Errors
* Federal Trade Commission: Annual Credit Report Request Form

Credit Scores and Credit Reports!