A new online resource from the Federal Reserve provides
practical answers to questions about credit reports, credit scores, and the
importance of protecting personal credit histories.
The Consumer's Guide to Credit Reports and Credit Scores describes the content of a
credit report, explains how a credit score is used, and discusses the role of
credit bureaus in collecting and disseminating this information.
Mortgage lenders, banks, insurers, utilities, employers, and
other businesses may obtain credit reports from credit bureaus to assess how an
individual manages his financial responsibilities.
Consumers need to know what's in their credit report and
understand how negative information, such as late payments or a bankruptcy
filing, might affect a lender's decision to grant credit.
The guide answers questions ranging from "What is a
credit score?" to "How can I get a free copy of my credit
report?" to "How long does negative information stay on my credit
report?" It contains tips to help consumers improve their credit scores
and provides step-by-step instructions for correcting an error in a credit
report.
More help available
The Consumer's Guide to Credit Reports and Credit Scores is
one of several online Federal Reserve publications, such as 5 Tips for
Improving Your Credit Score. It contains such nuggets of information as the importance of making sure
information in your credit report is accurate and understanding how your credit
score is determined.
Another Fed publication 5 Tips for Getting the Most from Your Credit Card, discusses with consumers the importance of paying bills on time and making more than the minimum payment on a credit card bill.
Many of these publications are available in Spanish.
