Why is a credit report important? Your credit report is important because lenders, insurers, employers, and others may obtain your credit report from credit bureaus to assess how you manage financial responsibilities. For example:

- Lenders may use your credit report information to decide whether you can get a loan and the terms you get for a loan (for example, the interest rate they will charge you).
- Insurance companies may use the information to decide whether you can get insurance and to set the rates you will pay.
- Employers may use your credit report, if you give them permission to do so, to decide whether to hire you.
- Telephone and utility companies may use information in your credit report to decide whether to provide services to you.
- Landlords may use the information to determine whether to rent an apartment to you.

How can I get a free copy of my credit report? You can get one free credit report every twelve months from each of the nationwide credit bureaus � Equifax, Experian, and TransUnion � by visiting www.annualcreditreport.com or calling (877) 322-8228.

You'll need to provide certain information to access your report, such as your name, address, Social Security number, and date of birth. You can order one, two, or all three reports at the same time, or you can request these reports at various times throughout the year. The option you choose will depend on the goal of your review.

A report generated by one of the three major credit bureaus may not contain all of the information pertaining to your credit history. Therefore, if you want a complete view of your credit record at a particular moment, you should examine your report from each bureau at the same time. However, if you wish to detect any errors and monitor changes in your credit profile over time, you may wish to review a single credit report every four months.

What is a credit score? How is my credit score calculated? A credit score is a number that reflects the information in your credit report. The score summarizes your credit history and helps lenders predict how likely it is that you will repay a loan and make payments when they are due. Lenders may use credit scores in deciding whether to grant you credit, what terms you are offered, or the rate you will pay on a loan. Information used to calculate your credit score can include:

- the number and type of accounts you have (credit cards, auto loans, mortgages, etc.)
- whether you pay your bills on time
- how much of your available credit you are currently using
- whether you have any collection actions against you
- the amount of your outstanding debt; and the age of your accounts

For additional information, visit www.federalreserve.gov/creditreports.

(Image provided by Buncombe County.)

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