The Credit Bureaus
01.The Three Data Keepers
Your credit history is tracked by three independent private companies called credit bureaus: Equifax, Experian, and TransUnion. Banks and credit card issuers send monthly reports to these bureaus detailing your balances and payment status.
02.The FICO Score
The bureaus use this data to calculate your FICO score, ranging from 300 to 850. A score of 740 or above is considered excellent, qualifying you for the best interest rates. A score below 600 makes borrowing difficult and expensive.
03.Annual Free Credit Reports
By law, you are entitled to check your credit report for free once a year at AnnualCreditReport.com. Monitor it to ensure there are no errors or fraudulent accounts opened in your name.