- 1). Learn about the three major consumer credit reporting companies. TransUnion, Equifax and Experian not only track consumer credit, spending, and borrowing habits but also tally a credit score based on those habits.
- 2). Know that each organization supplies one free credit report yearly to consumers. Keep the annual time span in mind to prevent paying for a report by requesting a report more than once a year.
- 3). Develop your credit IQ. To begin with, know exactly what a credit score means. Financial sources define a credit score as a complicated mathematical figure that assesses credit facts. Lending organizations use credit scores to decide a consumer's eligibility for things such as loans and credit cards. A credit score calculates the risk lenders take when providing credit to consumers. It reflects the possibility of consumers making payments over several years, and higher credit scores generally reflect lower risk.
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