Credit Report Scores

The three major credit reporting agencies receive information from credit grantors such as credit card companies, mortgage companies and banks. The agencies compile your credit history and compute your credit report scores. They then provide your history and scores to others who have a genuine interest in your credit worthiness.

Your credit report scores are based on factors that appear in your credit reports, such as:

• Bill payment history (Good: on time and for the full amount)
• Total outstanding debt (Good: non-mortgage loan payments less than 5% of gross income)
• Types of debt (Good: mortgage, car loans, Bad: high credit card debt)
• Length of credit history (Good: 3 or more years of on time payments)
• Credit inquiries (Bad: many rejected applications)

The Equal Credit Opportunity Act (ECOA) prohibits certain factors from being used in determining your score:

• Personal details such as sex, marital status, age, race, national origin, or because you receive public assistance income.
• Sources of income such as regular alimony, child support, or separate maintenance payments.

The Equal Credit Opportunity Act provides actions for you to take if you suspect unauthorized factors are being used to deny you credit.

You can request a copy of your credit report, learn more here.