Tidbits® - August 2007

Credit insight from Credit.com

Welcome to the Credit.com newsletter!

This free newsletter delivers easy-to-read tidbits about credit directly from personal finance experts. In this issue, we're giving you a crash course in credit scores. We'd love to hear fromyou! Send an email to tidbits@credit.com with your credit questions or comments anytime!

Quick Tip

Your credit score can change anytime. Using a credit score monitoring program can make tracking these updates a snap!

We recommend Equifax Score Watch for tracking your FICO score improvement over time. You'll receive access to your credit data and two Score Power reports.

See where your FICO score stands today - http://www.credit.com/r/fico_score_watch/

Back to School Credit Score Prep

Back to school season is right around the corner. What better time to give yourself a quick crash course in credit scores?! This month's newsletter will be your CliffsNotes. We'll cover all the basics you need to know about credit scores in 30 easy to remember facts:

1. Credit scores usually range from 300 to 850.

2. A credit score above 700 is generally considered 'good.'

3. A credit score below 650 is generally considered 'subprime.'

4. FICO (Fair Isaac) is the leading credit score company in the U.S.

5. Your credit score doesn't exist without your credit report.

6. Your credit score can potentially change every day.

7. Checking your own credit data does not harm your credit score

8. Payment history counts for 35% of your credit score.

9. 77% of consumers have never been 90+ days overdue with a payment.

10. There are five main credit report factors that are counted in your credit score: Payment History, Debt Usage, Credit Age, Account Mix, and Inquires.

11. Wisconsin has the highest average credit score - 717.

12. Mississippi has the lowest average credit score - 662.

13. It helps your credit score to have a credit card debt-to-limit ratio under 10%.

14. Your income isn't a factor in your credit score.

15. Your age isn't a factor in your credit score.

16. Closing old credit accounts does not help improve your credit score.

17. Credit scoring was invented in the 1950s.

18. Credit scores are used when you apply for credit cards, loans, insurance, utility accounts, cell phone accounts, and more.

19. Married couples do not share a single credit history and credit score.

20. FICO, Beacon, Empirica, Pinnacle, TransRisk and VantageScore are all different credit scoring model names.

21. Variations in data with the three credit bureaus make it common to have three different credit scores.

22. The average consumer has 13 active credit card and loan accounts on his/her credit report.

23. 45% of consumers don't know their credit score.

24. Negative records such as collection accounts or bankruptcy filings will impact your credit scores for 7-10 years.

25. A secured credit card is a good way to re-establish damaged credit.

26. FICO credit scores will start not counting authorized user accounts in September 2007 - http://www.credit.com/r/tidbits-fico-changes/af=p40523&ag=article

27. 60% of our readers don't think that FICO should make the above-mentioned change.

28. Most credit scores are designed to only predict how likely you are to have a 90+ day late payment in the next 24 months.

29. 92% of auto insurance companies use credit scores to set rates.

30. The average credit score in the country is 710.

How many of these credit score facts did you already know? Which ones took you by surprise? Did you earn an A+ today?

Send us your questions and comments at tidbits@credit.com anytime!

Ask John

The controversy over "piggybacking" authorized user accounts rages on.

This month, John gets the inside scoop from a piggybacking credit repair company.

Read an interview with a piggybacker - http://www.credit.com/r/tidbits-vol23/

On the Blog

Avoiding credit after a bankruptcy doesn't help you get back on track.

Opening new accounts and building positive records are key to re-establishing your credit after a filing.

Read about post-bankruptcy credit - http://www.creditbloggers.com/2007/07/reader-questi-3.html

Quote of the Month

"Education is not preparation for life; education is life itself."
- John Dewey

Tidbits® - August 2007

About this newsletter
This information has been compiled and provided by Credit.com as a service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.

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