This document provides a guide to understanding credit reports and maintaining a healthy credit score. It discusses the key components of a credit report including personal information, credit accounts, inquiries, and public records. It then outlines factors that affect credit scores such as payment history, credit utilization, length of credit history, and types of credit. The document concludes by providing tips for keeping credit in good standing such as paying bills on time, negotiating delinquencies, and using MyFico.com to monitor credit scores.

1. Understanding Credit This is a simple guide to understanding your credit and how to ensure a healthy credit rating for major life purchases including vehicles and homes.

3. Credit Accounts

4. Inquiries

5. Public Records

6. Collection Items

8. Social Security Number

9. Date of Birth

10. Employment

11. Updates to this information comes from data collected by your loan officer.

13. Date account was opened

14. Credit limit or loan amount

15. Payment history

17. Voluntary – You have requested a loan or credit card and the bank is accessing your report to establish a new line of credit.

18. Involuntary – Bank requested report to solicit a 'pre-approved' credit card.

20. Foreclosures and Repossessions

21. Lawsuits

22. Judgments

24. Payments

25. Payoffs

27. Those inquiries will remain on your credit report for two years.

28. You can regain those points by not requesting any new credit accounts until prior inquiries drop off.

34. How past due any negative accounts remain

35. Time since past due accounts were added to your report and since payoff

36. Balance between number of negative accounts (delinquent) and number of positive accounts (paid as agreed)

41. Vehicle/Student Loans

42. Credit Card

43. Retail Accounts

45. Pay your current bills on time, every time

46. Establish or re-establish a healthy payment track record

47. Have a hearty 'slice of pie' and diversify!

49. If offered a settlement, agree to the dollar amount, but stipulate that the negative item MUST be removed from your report.

50. Have the agreement in writing prior to paying the debt.