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Credit Score Education

Latest Guides

  • A Look at a Sample Credit Report
    There are many places and ways to get your credit report, and the format yours comes in may look different than the sample here. But credit reports, no matter where you get them, all include the same elements.
  • Building a Credit History
    A lot of people just starting out with credit don’t have a clue how to build a solid credit history. People rebuilding a bad credit history are slightly better off, knowing more about what not to do. Start here to learn how you can build a good credit history.
  • Utilization Rate (Debt-to-Credit Ratio)
    Your utilization rate is a factor that makes up 30% of your credit score, so it's important to understand what exactly utilization is and how you can calculate yours.
  • FICO Score
    Your credit score is a numeric snapshot of your credit history. It’s like a grade that lets lenders know how creditworthy you are. The higher your credit score, the better. The most commonly used credit score is the FICO score, named after its creators. Banks use FICO scores to make quick yes-no decisions
  • Don't Let Medical Bills Ruin Your Credit
    Medical bills are the leading cause of bankruptcy according to AARP. Unfortunately, many people neglect their medical bills without realizing the impact that those unpaid bills could have on their credit score.
  • Credit Card Charge-Offs
    After six months of late payments, your credit card issuer will likely charge-off your account. But this doesn't mean your debt has been canceled. Find out how charge-offs continue to haunt you and your credit report for up to seven years.
  • Use Your Credit Card Before Your Score Drops
    Using your credit card to improve your credit score sounds counterintuitive, doesn’t it? I mean, doesn’t racking up additional credit card debt hurt your score? Yes, it does, but not using your credit card also has its risks. Find out how to maximize your credit score here.
  • Beware of Credit Repair Agencies
    Firms claiming they can help you obtain stellar credit in a short time span usually charge hefty upfront and monthly fees, and produce limited results. Learn how they operate and why their methods aren't usually successful anymore.
  • 6 Steps to Improve Your Credit Score
    Your credit score has a huge impact on your financial life. It dictates whether or not you’ll qualify for new loans or credit cards, and at what interest rates. Follow these steps to make sure your score is as high as it can be before approaching lenders.
  • Credit Scores 101
    Your credit score is a number that signifies your creditworthiness. The higher the score, the lower the risk you appear to lenders and credit card companies.
  • How Credit Scores are Calculated
    Credit scores are based on the information in your credit report, and can change monthly. While not every bank and bureau calculates your score exactly the same way, the following factors are all weighed to some extent.
  • What Your Score Means
    Different lenders categorize credit scores differently. A score of 710 might be considered "great" by one lender and only "good" to another. But here are some general guidelines showing how a lender might view your credit score in today's economy.
  • Why is Credit Scoring Used
    Credit scoring is a system creditors use to determine whether to give you credit. Information about you and your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report.
  • Credit Score Types & Differences
    Lenders use a number of different credit score programs to determine what kind of risk you are. The best known credit score program is FICO credit score. However, there really are multiple versions of FICO and each can yield a different credit score for the same person. We also expound upon two factors causing variations in credit scores: the formula used, and different input data.
  • Credit Score
    The system for calculating credit scores is not public knowledge however we do have some idea of what impacts the scores. There are five main areas that are likely figured into the credit scoring process: payments; current debt; credit inquiries; credit lines available; and length of credit history. We tell you six things you can do to improve your credit score.
  • Top 5 Ways to Repair Your Credit Score
    "The reason to improve your credit score is so you can tap into great interest rates which go to people with the highest scores. Here are the top 5 Tactics to Repair Your Credit Score: Beware of your debt distribution - Ideally your debt will be 30% or less of your total credit limits;
  • Establish A Good Credit Rating, And Keep It
    A credit score is a number that attempts to predict how likely you are to pay back a debt. This score comes from comprehensive records kept on your payment history by the nation's three credit reporting bureaus. To establish a good credit rating, start by ordering a free credit report online to check it for errors. You can then begin a campaign to improve your credit.
  • Don't Get Caught With Your Credit Report Score In The Gutter
    Do you know what your credit score is? If you don't, your financial outlook could be in jeopardy. Your credit score determines whether lenders approve or deny your application. Happily, this information has never been easier to get. A law called FACTA (enacted in 2005) gives you the right to view free credit reports from all three big credit bureaus once a year, totally free.

Latest Blog Posts

  • Foreclosure Options and Their Credit Score Impact
    Homeowners facing foreclosure undoubtedly wonder whether there are options less severe to their credit scores. For example, will a short sale or deed-in-lieu of foreclosure be less damaging to your credit score? Unfortunately, the answer may not be very encouraging, but knowing the credit score consequences helps homeowners weigh their options.
  • The Wrong Way to Improve Your Credit Score
    When you're improving your credit score, avoid these mistakes that will slow down your credit repair progress.
  • Credit Card Statistics
    How much credit card debt do American consumers hold? The Federal Reserve Board's Survey of Consumer Finances offers authoritative credit card debt statistics.
  • Do You Know How Strong Your Credit Is?
    You may know how many credit cards you have in your wallet, and how much you owe on each. But do you know what your credit rating is? Or why this might be important? Here’s a quick guide to give you the skinny on credit.
  • Walking Away From Your Mortgage: Smart Decision or Dumb Move?
    If you're living in a home that's worth less than the mortgage, you may consider walking away from your mortgage. But, that affect your credit the same way as a mortgage.
  • The Cost of Marrying Someone with Bad Credit
    What better time to talk about couples and credit than the week leading up to Valentine’s Day? See how your partner's bad credit can cost you money each month.
  • A Visual Guide to Credit Reports and Scores
    SpendOnLife has puts its creative powers to the test to create an animated short that explains credit reports and scores. We think we did a pretty good job; let us know what you think!
  • Don't Flush Your Credit Down the Drain
    Check out our newest infographic that shows the nasty turns your credit rating will take if you were to simply stop paying your bills.
  • Low Credit Scores Lead to Higher Insurance Rates
    What does your credit score do with your ability to drive? The most obvious answer is nothing, but that’s not what insurance companies think.
  • Friday Grab Bag - 12/11/2009
    It's Friday again, and that means it's time for the weekly SpendOnLife grab bag! Here we share some of the week's more interesting tidbits from the world of credit, personal finance, and identity theft. Enjoy!
  • Late Payment Can Drop Your FICO Score 110 Points
    FICO has finally opened up a little about the number of points at stake when you are careless with your credit.
  • Denied for a Home Loan Mod...Is Foreclosure Next?!
    Denied for a home loan modification, credit score in the gutter, debt through the roof...how can I keep my house and avoid foreclosure?
  • People Capital Offers a New Student Score to Rival FICO
    FICO schmico. Credit scores have long proven an obstacle to getting a loan for students with little credit history. But there's a new score in town and it is specifically designed for students.
  • Friday Grab Bag - 10/23/2009
    It's Friday again, and that means it's time for the weekly SpendOnLife grab bag! Here we share some of the week's more interesting tidbits from the world of credit, personal finance, and identity theft. Enjoy!
  • Rodney Anderson Pioneers the Medical Debt Relief Act
    Should medical debt should hurt your credit score in the same way that other types of unpaid debt do? Rodney Anderson doesn't think so.
  • Credit Q&A with Wells Fargo
    I recently had the opportunity to chat with Erick Smith, a lending specialist based at a Wells Fargo branch in Portland, Oregon.
  • Getting an iPhone with Bad Credit
    The good news: The 3G iPhone now costs only $99. The bad news: If you have poor credit, it may end up costing you $899.
  • Friday Grab Bag - 9/11/2009
    It's Friday again, and that means it's time for the weekly SpendOnLife grab bag! Here we share some of the week's more interesting tidbits from the world of credit, debt, and identity theft. Enjoy!
  • Understanding a Credit Score
    I thought I'd bring it back to basics today, because there are plenty of folks out there just learning the importance of a credit score (and many more who need a refresher!).
  • 7 Advantages of Credit Cards
    We hear a lot of negative things about credit cards and why we don’t need them – but here are seven advantages that make them worth keeping in your wallet.
  • Are "New Credit Files" Real?
    One of the services offered by some credit repair companies is a new credit file, completely free of any credit history – good or bad. Are these new credit files real?
  • 10 Simple, Free Ways to Protect Your Identity
    Identity theft is a real and serious problem. Fortunately, there are several basic things that you could do to reduce your chance of becoming an identity theft victim.
  • Careful! A Loan Modification Can Hurt Your Credit
    When foreclosure seems imminent, a loan modification seems like a godsend. The benefit is a mortgage payment borrowers can afford, but the true cost, many are discovering, is a damaged credit score.
  • The Medical Debt Relief Act of 2009: Just What the Doctor Ordered
    A new piece of legislation on the table in Washington, if passed, would lessen the impact of medical bills on our credit scores.
  • The Reality of the Joneses
    Do you have a "keeping up with the Joneses" mentality? You know, the mindset that you should have a better, bigger, and brighter lifestyle than those less fortunate, little people around you? Yep…you know what I’m talking about!
  • The Mortgage Application Process: What to Expect
    What should you expect now in the mortgage processing experience? Here are 8 things to prepare for to make your mortgage application process smoother and faster.
  • New York Times Fires Ben Stein
    Ben Stein—actor, comedian, and former Clear Eyes spokesman—was recently fired from his 4-year stint as a columnist for the New York Times.
  • Can My Credit Card Company Sue Me?
    When you signed on the dotted line of your credit card agreement, you promised to pay off any debts you incurred on that credit card. If you default on that debt, your credit card provider may seek a judgment against you in a court of law.
  • Medical Credit Cards: Should You Get One?
    Medical credit cards are offered by lenders to consumers facing large out-of-pocket medical expenses. Here are the pros and cons of medical credit cards to help you decide if applying for one is the right choice for you.
  • Round-Up of FTC Consumer Resources
    The Federal Trade Commission is the government agency designed to "protect America's consumers." It was created in 1914, and has gained greater and greater authority through the years. Here's a round-up of the key online resources the FTC offers you.
  • Don't Call it a FICO: Fair Isaac Sues the Credit Bureaus
    Fair Isaac, the creator of the well-known FICO score, is suing credit reporting agencies TransUnion and Experian for trademark infringement.
  • The 5 Most Common Credit Problems
    Low credit scores are caused by negative information on your credit report. There are numerous things on your credit that can influence your credit score, but here are some of the most common problems.
  • When a Credit Search Hurts You
    Does shopping around for the best rate during your search for a new credit card, auto loan, or mortgage hurt you? Learn when credit inquiries affect your credit score here.
  • Listen Up, Ladies: He's Just Not That into Credit
    The relationship that a guy has with his finances will more than likely mirror the other relationships in his life. If he doesn’t take care of his credit by paying back debts and curbing his spending, chances are, he's neglecting the other responsibilities and people in his life too.
  • FICO 08 Allows "Piggybacking"; Equifax Adopts the New Credit Scoring Model
    The FICO credit scoring system, originally implemented in the late 1950s by the Fair Isaac Corporation, has been undergoing a few lifts and tucks lately. The new scoring model, called the FICO 08, was first adopted by credit bureau TransUnion several months ago, and Equifax just announced that it will also begin using FICO 08.
  • Weekly Grab Bag - The Fourth of July Edition!
    Welcome to the Fourth of July edition of the SPENDonLIFE weekly grab bag! Check out some of the latest happenings in the world of credit, all related to Uncle Sam of course. Have a great holiday weekend!
  • Google Clarifies its Use of FICO Credit Scores
    Yesterday we posted about Google's recent ability to determine users' credit scores based on which websites they visit. There weren't a lot of specifics available how exactly this worked or how the information would be used, so we were happy to get Googler Sandra's take on it. Here's what she says.
  • Is Google the New Credit Bureau on the Block?
    Your credit score is about to affect more than just the interest rate you get on your next loan or credit card. Soon, it will start to influence the kinds of ads you see on the internet.
  • Here, Piggy Piggy! Credit Score Butcher Chart
    We're always thinking up new ways to explain credit to our readers in easy-to-understand terms. Hence our latest effort: the Credit Score Butcher Chart, for all you ham lovers out there.
  • Friday Grab Bag - 6/26/2009
    It's Friday again, and that means it's time for the weekly SPENDonLIFE grab bag post. Here we share some of the week's more interesting tidbits from the world of credit and identity theft. Enjoy!
  • My Credit Journey - Finally, a Mortgage!
    I did not expect to be thinking about a mortgage so soon, but when you live in a house as small and filled with people as I do, changing your living situation is pretty much first and foremost on one’s mind. So after buying my car, I started looking into what I'd need to do to get a mortgage.
  • My Credit Journey - Moving On Up
    Months of ignoring my student loan bills had taken its toll on my credit report. The cold bucket of credit reality had been poured over me, and I spent the better part of a year trying to straighten up my score.
  • Obscure Credit Score Facts from Liz Pulliam Weston
    In this week's Personal Finance Hour, Liz Pulliam Weston shares some interesting tidbits, personal anecdotes, and FICO facts that you might not know about credit scoring.
  • Today is National "Let It Go" Day!
    You might not know this, but today is national Let It Go Day. Because we’re a credit and finance blog, we think you should let go of all those past credit mistakes that you can’t go back in time and fix.
  • How Can I Raise My Credit Score?
    We get a lot of questions from readers asking "How can I raise my credit score?" Truthfully, there is no quick and easy fix, but there are some steps you can take that will help (some more quickly and dramatically than others).
  • Friday Grab Bag - 6/12/2009
    It's Friday again, and that means it's time for the weekly SpendOnLife grab bag post. Here we share some of the week's more interesting tidbits from the world of credit and identity theft. Enjoy!
  • Weird Credit Card Trend: More Defaults, Fewer Delinquencies
    As the credit crisis continues and the charge-off rate increases, credit card delinquencies are surprisingly on the decline.
  • Blacklisted by Your Credit?
    Your credit report is your financial footprint. It is uniquely yours and it serves as your first impression to the financial world. This "first impression" will introduce you to lenders, employers, landlords, and anyone else that needs to know if you are creditworthy.
  • Friday Grab Bag - 6/5/2009
    It's Friday again, and that means it's time for the weekly SpendOnLife grab bag post. Here we share some of the week's more interesting tidbits from the world of credit and identity theft. Enjoy!
  • Friday Grab Bag - 5/29/2009
    It's Friday again, and that means it's time for the weekly SpendOnLife grab bag post. Here we share some of the week's more interesting tidbits from the world of credit and identity theft. Enjoy!
  • How Good and Bad Information Impacts Your Credit Score Rating, and for How Long
    Credit score ratings are based on the information - both negative and positive - that’s available in your credit report. Here we discuss this information, and for how long it impacts your score.
  • 2 Ways Cell Phones Can Lower Your Credit Score
    I’ve gotten a couple of questions from readers asking whether or not a cell phone can hurt your credit. The short answer is yes, it can. Here’s how.
  • Credit Score Rating Scale Chart
    Here, I've rounded up several variations of a credit score chart from different sources. These are to give you a general idea of what your score might means from a lender's point of view.
  • Is Credit Card Insurance Worth It?
    In this unstable job market, credit card insurance sounds like a godsend. In the unfortunate event of a layoff, you need to know that your credit card bills will be covered. But is it really as worthwhile as it sounds?
  • Don't Mistake FreeAnnualCreditReport.com for the Real Thing
    Thousands of people each month type in all kinds of "close-but-no-cigar" guesses and misspellings into search engine boxes and internet address bars in an attempt to find the authentic FTC-sponsored site, which is (drum roll, please...)
  • Credit Report Information
    Here, we rounded up the links to our most useful credit guides and government and industry credit sites. We hope you'll find the following resource list useful.
  • The Right Way to Shop for a Credit Card in the Crisis
    One of the key characteristics of the credit crisis is that credit card shopping has gotten harder. Not only have the minimum credit score requirements gone up, but some credit card issuers have stopped offering some of their most attractive perks, like credit card rewards. Indeed, finding a credit card in this economic landscape is different from the times when credit was flowing freely.
  • Top 10 Ways to Pay for Your Wedding
    We all know weddings are about celebrating the love you and your honey have for each other, but let’s face it—they still cost a $!#&@-load. Whether your budget is $2000 or $20,000, explore these ten ways to finance your wedding.
  • Friday Grab Bag - 4/17/2009
    Each week we point you to interesting news tidbits, personal finance advice, and scam alerts that we think you’ll find interesting or helpful. Check here every Friday for informative and slightly off-the-wall takes on issues related to the economy, credit, and identity theft.
  • A Vicious Cycle: How Banks Keep Us in a Credit Crisis
    By trying to protect themselves and their investors, banks have only made the credit crisis worse. Here's how banks are damaging our credit scores, which in turn makes it harder for us to qualify for new loans and credit. It's a vicious cycle that's not easily broken.
  • College Kids and Credit Cards: Sallie Mae's Latest Study
    Sallie Mae just released its 2009 study, "How Undergraduate Students Use Credit Cards." The results show that, despite the credit crisis, college students are relying on credit more than ever before.
  • Be Smart with Your Tax Refund
    How will you spend your tax refund this year? If you have debt (and, really, who doesn’t?), consider using your check from the IRS to do some serious good…for your credit score.
  • Unemployed? Citi Might Lower Your Mortgage Payment to $500
    With unemployment at a 25-year high, many aren't able to cover all of their monthly expenses, including a home mortgage. One mortgage lender has decided to give a helping hand.
  • Consumer vs. Lender Credit Scores
    You think you know how the credit scoring system works: Each American has a number, ranging from about 300-850, that tells the world how creditworthy they are. But the truth is, no one has just one credit score.
  • Fair Isaac Unveils New FICO Score

    Fair Isaac recently released FICO 08, its latest credit score formula that supposedly predicts risk more precisely than previous versions.