Software is used to calculate credit scores based on the information in your credit report. The formula is based on a changing mix of the things shown in this chart:

• Payment history
• Amounts owed
• Length of credit history
• New credit
• Types of credit used

The weight given to any factor depends on who’s being rated, but generally, the most important factors are whether you pay your bills on time and if your balances are reasonable.

http://www.myfico.com/images/CreditEducation/ce_scorebreakdown.png

By law, you’re entitled to one free copy of your credit reports every year. Check it out for problems! The government-sponsored free credit report can be ordered at www.annualcreditreport.com.

Three major credit bureaus
• Equifax (800) 685-1111
• Experian (800) 682-7654
• TransUnion (800) 888-4213