Your credit history is a financial profile. It lets lenders, landlords and employers know how you have managed money in the past and helps them decide whether or not to do business with you. This history is contained in a credit report that is kept on file by three independent credit bureaus – Equifax, Experian and TransUnion. It may include such information as:

• How promptly you have paid off credit cards and loans
• How well you have handled paying other bills, such as rent and utilities
• Your total outstanding debts
• How much available credit you have on credit cards and home equity loans

Your credit report can and most likely will be reviewed by anyone planning to give you a loan or credit, such as banks and credit unions, credit card issuers, auto financing companies, and insurance companies. Your report also may be checked by landlords and potential employers. Some lenders may also use the details in your report to determine how much credit they are willing to offer you and at what rate. Anyone with a legitimate business need can access your credit report, though an employer (or prospective employer) typically requires your written consent to do so.

If you've had any late payments, foreclosures, or repossessions, this information stays in your credit report for up to seven years. If you've filed for bankruptcy, this information can stay in your report for up to 10 years.

Some companies claim they can "fix" such problems for a fee. However, it is legally impossible to alter an accurate credit history. If you find yourself in financial trouble, contact a member agency of the National Foundation for Credit Counseling (NFCC), the nation's largest national nonprofit credit counseling network, by calling 1-800-388-2227 or visiting www.nfcc.org.

When you apply for credit, lenders determine your credit risk by examining your credit scores, also known as FICO® scores because they are calculated with software developed by Fair Issac and Company. Each of the three main credit bureaus - Experian, TransUnion, and Equifax - keep credit information about you that is used to calculate your FICO® scores. Such information includes your payment history, the amount of money you owe, the length of your credit history, and the number of recently opened credit accounts.

Your FICO® scores guide lenders as to what your credit risk is. Scores range from 300 to 850. The higher your score, the lower your perceived risk to a lender.

For a free estimate of your credit score, visit the FICO® Score Estimator.

• Complete credit applications carefully and accurately.
• Use your credit cards responsibly and don't let them reach their limit or spend beyond your means.
• Attempt to pay your credit card balance in full each month, but at least make the minimum payment by the due date.
• Always pay bills on time.
• If you have problems paying your bills, contact your creditors. In many cases, they will work with you to figure out a payment plan.
• If you move, let your creditors know your new address as soon as possible to avoid losing bills or receiving them late.
• If your credit card is lost or stolen, report it immediately.
• Review your credit reports periodically for accuracy and report any errors immediately.
• Establish a consistent work history

You have the right to request one free copy of your credit report each year from each of the three major consumer reporting companies (Equifax, Experian and TransUnion) by visiting AnnualCreditReport.com. You may also be able to view free reports more frequently online.

• Online: Visit AnnualCreditReport.com 
• Phone: Call (877) 322-8228
• Mail: Download and complete the Annual Credit Report Request form . Mail the completed form to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

By requesting the reports separately (for example, one every four months) you can monitor your credit report throughout the year. Once you’ve received your annual free credit report, you can still request additional reports. By law, a credit reporting company can charge no more than $14.50 for a credit report.

When you visit AnnualCreditReport.com , you may see steps to view your updated credit reports at no cost, online. This gives you a greater ability to monitor changes in your credit. If needed, you can also ask whether your credit report is available in your preferred language.