There are multiple credit scores that are calculated differently and used by different lenders. FICO scores range from 300 to 850, while VantageScore ranges from 501 to 990 with letter grades. Consumers can check their credit reports for free once a year from each credit bureau, but will need to pay a fee to access their actual credit scores from the bureaus. Maintaining good credit health through on-time payments, low credit utilization, and a variety of credit products can help improve credit scores over time.

1. http://www.youtube.com/watch?v=xovL00KOlVM
There is no single number. The compilers of the widely accepted FICO credit
score allow lenders to customize their system, so different lenders produce
different scores. Plus, each of the credit bureaus—Experian, Equifax and
TransUnion—has a proprietary scoring model. As if that weren—t enough, the
credit bureaus together invented VantageScore a few years ago to compete with
FICO.
SEE ALSO: Credit Scores Are on the Rise
2. Different scales, different scores. FICO scores range from 300 to 850. You—ll
need about 760 or better for the best mortgage rates, but a score of 720 should
be sufficient to get you the best deal on an auto loan. About 10% of lenders now
use VantageScore, which ranges from 501 to 990 and has corresponding letter
grades from A to F. The best rates go to borrowers with scores in the A range
(above 900). If you are denied a loan or given less than the best rate, a lender
must tell you the score it used, along with the corresponding range and factors
that adversely affected your score.
3. Do a credit checkup. You can monitor your credit yourself by requesting a
free report once a year from each of the credit bureaus through
www.annualcreditreport.com. But the free report won—t include your credit score;
you—ll pay about $8 to get the credit bureau—s proprietary number. The majority
of lenders (especially mortgage lenders) use FICO scores, however, so if you—re
in the market for a loan, that is the one you want. At www.myfico.com, you can
get your credit report and a FICO score from Equifax or TransUnion (but not
Experian) for $20.
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4. Free doesn—t always mean free. If you are just looking for a ballpark
estimate of how you—re doing, go to www.credit.com. You—ll get free estimates of
your FICO score and VantageScore along with Experian—s own PLUS score. Sites
such as www.freecreditscore.com and www.creditreport.com, however, will give you
a free PLUS score, but only if you sign up for a free trial subscription to a
credit-monitoring service; if you don—t cancel in seven days, the service costs
$15 to $20 a month. Likewise, at MyFICO.com, you can get your FICO score free,
but only if you accept a trial subscription to the company—s Score Watch system.
5. Maintain credit health. All of the scores measure the same factors from the
information in your credit file, and they all indicate the same thing:
creditworthiness. Try to keep your credit-utilization ratio low—that is, be
aware of the amount of debt you have compared with the amount of available
credit you have. A history of paying your bills on time helps. Having a variety
of loans—for example, a revolving line of credit (such as a credit card), a car
payment and a mortgage—will boost your score, too.
6. It—s a moving target. The information in your credit files at the bureaus is
continually changing—and so will your score. If you—re about to apply for a
loan, check your reports for mistakes that could impact your score. Pay down
balances as much as possible. And if you—re not applying for a credit card or
making a big-ticket purchase anytime soon, says Jason Alderman, a senior
director at Visa, "it doesn—t matter what your score is tomorrow."
http://www.youtube.com/watch?v=xovL00KOlVM
Read more at http://www.kiplinger.com/article/credit/T017-C000-S002-6-things-to-
know-about-credit-scores.html#iAueOECMBcGsMM7F.99