You need to think of your credit score as this way-as your life. It is a very important and serious factor. It dictates what type of borrower you may be and establishes whether or not you will be trustworthy to lenders. The term fico is named after fair Isaac corp, the firm that developed the scoring model. Your fico score is calculated using a computer model that compares the information in your credit report to what’s on the credit reports of thousands of other customers. Scores also fluctuate depending on credit activity. Since credit bureaus only calculate your score at the lender’s request, it will be based on the information in your file at that particular credit bureau, at that particular time only.

Although identity theft is getting a lot of attention, credit reports are more likely to have inaccuracies that can cause problems. For example, an account may be reported as paid , but still show a balance due. Also, some small creditors are really good at reporting late payments, but not so good at reporting paid off accounts. Occasionally, a creditor will give an account to a collection company, and both will continue to report delinquencies, although only one is legally entitled to. Correcting inaccuracies in your credit report is as important as looking for evidence of identity theft.