Yes, You Can Understand Your Credit Score!

Know what to do – and what not to do – to achieve the benefits of a better credit score 

Your credit scores, calculated by the three major credit bureaus, reflect your historical credit payment patterns and give more weight to recent information. While you can't change history, there are steps you can take once you better understand your score:

• Pay your bills on time. Other than keeping close tabs on your credit report and credit score, this is the single most important thing you can do. There is nothing more detrimental to your credit score than being late on payments.
• Maintain low balances on credit cards and other so-called "revolving" credit lines. If you have a large amount of outstanding debt, that can have a major negative impact.
• Don't open more credit accounts than you need. You may think this leads to a better "credit mix," but it could affect your score.
• Pay off debt rather than moving it around from account to account.
• Don't close unused accounts while you still have substantial debt outstanding. This could actually lower your credit score since you will be, in effect, using a higher percentage of your available credit.

As you can see, many factors go into calculating your three credit scores – and some may seem contradictory. (For example, closing out an installment account and paying off the debt should improve your score. However, having less available credit – and perhaps changing the average age of your credit accounts – could lower your score.)

And remember, there is no quick fix for a bad credit score. Think in terms of your entire credit report history. Certain items – late payments, bankruptcies, too many credit inquiries – will carry less weight over time. All you can do is stay informed, pay your bills and wait.

Want help understanding your credit score, or determining the likely impact of a major credit application? You're going to need assistance.

IDENTITY GUARD^® - the leader in credit management services - is committed to helping consumers understand and protect their credit ratings. Our EXTRA CAUTION^SM service monitors all three major credit reporting agencies - Equifax^®, Experian^®and TransUnion^SM - to keep you apprised of your credit score and alert you promptly to potentially suspicious changes to your credit file - minimizing the risk of real damages occuring. It's a 3-3-3 credit profile - 3 credit reports, 3 credit scores, 3-bureau monitoring.

Plus, with EXTRA CAUTION^SM, you get daily surveillance of the Internet's "financial black markets", "back alley" chat rooms and news groups. Patented scanning technology helps ensure that your important financial information is not being compromised or "swapped" in sites frequented by identity thieves.

IDENTITY GUARD also offers Credit Analyzer, an interactive, online tool that helps predict how certain actions - for example, applying for a mortgage - might affect your score.

Want even more help? IDENTITY GUARD also has Credit Education Specialists to answer questions regarding your credit report and credit score.