How to check credit score to ensure correct information.

A credit score is the number that represents the creditworthiness of a person. It is a statistical probability based on your credit report history and your overall credit score information as calculated by the three major credit bureaus.

Credit provider companies use credit score numbers to evaluate potential risk and reduce bad debt losses; to choose who gets a loan; determine at what rate is charged; and decide credit limits. Credit scores are now even sometimes used to determine prices for insurance. Many employers do a credit check on potential employees to get a sense of their overall trustworthiness.

The information from key areas of your credit report make up your overall credit score. Therefore, it’s advisable to check credit score results often. Your account information, including credit cards, outstanding auto and student loans and mortgages, public records like liens and bankruptcies, inquiries or requests by lenders - are all a part of the credit scoring system.

The credit score keeps changing as often as your credit information is updated. It's important to understand the credit score explanation for each section of the report. The credit report usually contains your name, date of birth, identifying information, any known aliases, phone number, your current and previous addresses, current and previous employers, your social security number and marital status.

Furthermore, your report will contain credit history information about how you have managed credit accounts in the past. A complete payment history of your loans and credit card accounts, along with information about any bankruptcies, tax liens or monetary judgments against you is compiled by the credit reporting agency - also known as a credit bureau.

Financial institutions and creditors regularly send payment information about their account holders, which includes what you owe and how many payments are made on time or are late.

Information is also collected from public records. The agencies sell reports to credit providers, employers and landlords provided you've authorized them to acquire your report. You are required to give written permission, which you do when you sign any detailed application form.

Be advised that your credit report does not contain data about your race or religious preference, your medical history, your personal background and lifestyle, stocks and bonds, personal assets, salary history, checking or savings accounts or political preference, your friends, any criminal record or any other sort of information which is unrelated to credit.

Also, not all credit accounts get listed on every credit report, since every credit grantor does not always report to the same credit bureau. You can verify which credits report to what agency when you check credit score results.

The credit reporting agencies maintain individual files for each resident of the US, rather than combining files for spouses - so your credit report is separate from that of your spouse. Joint credit accounts will appear on both credit reports and your spouse's name can appear on your credit report, so check credit score data closely.

Inaccurate information can often appear in credit reports. Research indicates that one-fourth of credit reports have serious errors which could result in denial of credit. This is a big reason to check credit history information often.

Consumers need to periodically check credit score results, especially before applying for a major loan or mortgage. You are entitled to a free copy of your credit report, each year, from each agency. In addition, you are entitled to a free report if you have been denied credit because of something derogatory in your credit report.

According to the Fair Credit Reporting Act, credit reporting agencies and creditors have to correctly document your credit information. Therefore, if you find an error when you check credit score results, take immediate steps to report the error and follow up to ensure it is corrected in a timely manner.

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