Obtaining credit and using credit requires that you demonstrate responsibility and understand how credit can help and harm your personal financial plan. For some, the level of responsibility demonstrated by an individual is measured in a credit score. Creditors assess the risk involved in extending credit and creditors will review your previous practice of managing credit responsibly. Your credit score represents your credit history, including your payment practices, the length of your credit, the number of credit accounts and inquiries, the amount of money you have borrowed, and how much money you owe. By managing your credit score you can access lines of credit that may help you reach your financial goals.
To manage your credit you will need to understand your credit score, learn to protect and improve your credit score, and know what to do if your credit score does not accurately represent your financial situation. The following resources provide information to get you started.
You can obtain a free credit report once a year through one of the following agencies. Beware any pitches that you must buy something to obtain your report.