What are Credit Score Ratings, Credit Reports and Scores?

Say you want to get a loan of few thousand dollars from a bank. While the bank would be happy to get some interest out of you for the amount they lend you, they would also like to be assured that the principal amount they are lending you is not going to be in any significant risk, in the first place.

In other words, the lender should reasonably believe that you will pay the original money back, along with interest, at some point of time in future.

And how could a potential lender make such a risk assessment about you - who is likely a total stranger to them before this transaction? If it were possible for them to be able to take a look at your past loans and payment history, they might just get a reasonable idea if lending money to you would be a low risk investment, or a high risk one, right?

Well, that past loan and payment history is what is your credit history. And when they look at your history, they can make a reasonable estimation of your ability, and willingness to repay your debts. That estimation they make, of your "creditworthiness", is your credit rating.

And a credit score is nothing but the "quantification" of that rating, based on a formula that takes into account your entire credit history - including your payment history, types of current / past accounts, age of accounts, total outstanding debt, bankruptcies, and also inquiries, if any.

Still confused about the definitions of these terms? Here you can find a list of credit score and credit rating definitions from various popular sources, that can help demystify these terms a bit. Or jump straight to more info on credit bureaus, FICO scores, scales and ranges.

Why is improving credit score ratings important?

And just as important, you stand a better chance of getting that loan for the interest rate you want - which, obviously, is lower the better. And if you think about it, you need a loan for many a major purchase these days - like an auto or a home loan, for instance.

And loans and credit card applications are just one aspect of it. Now-a-days - fair or unfair - your credit score ratings and history are being checked for pretty much everything under the sun. You insurance premiums can depend on it. Your lease contract and deposit amount can depend on it. Your employment prospects can depend on it.

A good rating can well make the financial path to your dreams, aspirations and future life, a rosy one. And a bad one can keep throwing hurdles and obstacles along the way.

So what can you do to improve your credit score ratings? Getting rid of excessive financial liability, avoiding unnecessary credit card debt, and being responsible with one's money - these are good places to start!

Getting Your Reports and Scores

Improving Your Ratings and Scores

Who is Doing a Background Check on You?
Wondering who might be checking your credit score ratings and reports? It's not just prospective lenders, but a host of other companies as well!

What is a Credit Score?
A quick summary on what it is all about, why and how should you improve ratings and scores.

Credit Rating Score Scale
A score by itself has little meaning, unless it is accompanied by the corresponding ratings scale.

What are FICO Credit Scores?
To have a good score, it helps to first understand what that magic number comprises of.

FICO Credit Score Range
Do you know what FICO scores are, and what the FICO score range is?

FICO Credit Score Scale
FICO scale to give you an idea on what your particular score might mean.

Perfect Credit Score
What is a perfect score? What does it take to get there? And more importantly, do you need to aim that high?

Credit Report Questions and FAQs
13 frequently asked questions on those reports.

Getting Your Reports and Scores:

How To Check Your Credit Report
Here are few ideas on where to get your report and ratings.

Free Credit Reports Online
Wondering if you can get free access to your ratings and reports online, without any strings attached?

Free Credit Score Instantly
How about free score online? Is that even possible?

Credit Score Simulator
Here is a free score estimator that gets your estimated FICO score range.

Low Credit Score Loans
Some ideas on where to get a loan if your credit score ratings are less than perfect.

Repair Your Ratings and Scores:

Tips for Credit Repair Online
What to look for in your reports? How to repair any errors?

Credit Report Disputes
So you found some errors in your report? How do you go about getting them fixed?

Fast Credit Report Repair
Attack these items in this order for fast repair of your report.

How to Repair Bad Credit
Here are some steps you can follow up with, to repair your ratings and score.

Repair Credit Report History
Have you gone through a bad credit phase, and are looking to repair your history?

How to Improve Credit Rating
Here are few easy-to-follow ideas for a better long-term rating and score.

Can You Repair Credit After Bankruptcy?
Is bankruptcy redeemable? Can you repair your score and ratings afterward?

Credit Repair Debt Management Services
What are they? Should you use such repair services?

Legal Credit Repair Services
With commercials everywhere, how do you know which of these repair services is legal, and which could be a scam?

Bad Credit Repair Counseling
Wondering what exactly do these counseling firms do?

How to Report Credit Card Fraud
Here is how to report credit card fraud and other scams.

Credit Repair Sample Letters
Here you will find a sample dispute letter from FTC, to write to the bureau, if you find any inaccuracies in your report or credit score ratings.