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Now that you have learned about the significance of a credit report and ways to earn better credit health, you’re probably curious about your own scores.

Step-by-Step Guide:

First, get a credit score estimate.

Use the Credit Score Compass (It's fast, easy, and free.), or a Free 30-day trial - Equifax Credit Watch Gold with Score Power , which is more in-depth (and also free). Be sure to answer as honestly and accurately as you can, and print out your results for future reference. When you are finished, you can see how your score compares to those of consumers across the country. We also provide a checklist you can use to continually consider and assess your developing credit strength.

Next, see how your scores compare to those of other consumers.

The following chart will help you see how your credit score compares to national averages. It's important to note that these percentile rankings don't affect how companies use your scores. To them, the scores themselves matter, and a score over 750 is considered very strong. This chart is just for your reference.

Score Percentile (How the score compares to the rest of the country)
500 Lowest 1% - this means that 99% of the country scores higher than you
600 Lowest 18% - this means your score is only better than 18% of the country's; the other 82% have a higher score than you do)
700 43% - Even at 700, 57% of the country scores higher than you do.
800 90% - You're in the top 10%. Your score is better than 90% of the rest of the country. Congrats!

Now that you've worked through the Credit Report Card, you'll have a good sense of what you need to do to earn better credit health and maintain it a high level.

Maintain and/or earn better credit health using the Credit Health Checklist

Use the checklist below to help you continue to assess and earn better credit health. Anytime you answer "Yes" to a question listed, you are on the right track for that particular aspect of your credit health. Anytime you answer "No," this is indicative of an area in which you need to improve. Use this checklist on an ongoing basis-as you know, your credit standing is constantly changing. Even if your credit is good today you want to be sure it will still be good tomorrow.

Credit Health Checklist

Payment History

  • Have you paid off any debts that have gone to a collection agency and any debts on the public record?
  • Do you consistently make your payments on time on any loans, mortgages, and credit cards?
  • Have 7-10 years passed since your last late payment or negative public record?

Debt Usage

  • Are you using 10% or less of your available credit card limits?
  • Have you kept credit cards open, even if they have no balance and you do not intend to use the accounts again?

Credit Age

  • Do you have credit lines (e.g., credit cards) that you have kept open for many years?
  • Are you keeping older lines of credit open to show that you have a long history of handling credit?

Account Mix

  • Do you have different types of accounts open (e.g., credit cards, mortgages, car loans, student loans, etc.)?

Inquiries

  • Have you avoided taking on offers of additional credit unless they are necessary?
  • Have you shopped around and determined the deal you want most before allowing a lender to pull your credit report?

As you consider ways to earn better credit health, keep in mind the relative weights of the different areas affecting your credit strength. Fortunately, the ones you have most control over- Payment History & Debt Usage- are the most important factors in calculating your score.

Key takeaways:

  • You can earn better credit health! Some people believe they have no power to change anything on their credit reports, but this isn’t the case. In fact, the way you manage your credit affects your score greatly and you can certainly take charge of that process. Also, if you see any mistakes on your credit report, you can contact the credit reporting agency in order to get them corrected.
  • Remember the areas influencing your credit score and what you can do to prevent the loss of points in each area:

    Payment History (35%)

    • Always pay on time; avoid late payments.
    • Pay off, as soon as possible, any outstanding debts that have gone to collection agencies.
    • Avoid liens, judgments, bankruptcies, repossessions, foreclosures, and settlements.

    Debt Usage (30%)

    • Keep your balances as low as possible and avoid having too many accounts with balances.
    • Keep your credit card utilization as close to 10% as possible.

    Credit Age (15%)

    • Wait for your accounts to age (not much you can do there).
    • Avoid opening a lot of new accounts in a short period of time.

    Account Mix (10%)

    • If possible, get a mortgage, buy a car and use credit cards. Nothing is wrong with credit use. It's abuse that's a problem.
    • Avoid having a credit report with only credit cards.
    • Avoid finance company accounts. If you can't get approved through a bank or credit union.then you don't need it.

    Inquiries (10%)

    • Do all of your "rate shopping" for home and auto loans over a short period of time, and allow lenders to pull your credit reports only when you know you are ready to apply.
    • Avoid opening many new accounts in a short period of time. Don't fall for the "save 10% on your purchases if you open a new account" offers at the mall. Never use your credit as a 10% off coupon.

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