Your credit score might feel mysterious, but it’s not out of your hands. There is no hidden algorithm or secret formula beyond your reach. Your credit score is based on specific information found in your credit report, and federal law gives you the right to see that report. When you know what’s in it and how it’s calculated, you can take real steps to improve your financial future.
A credit score is a three-digit number, usually between 300 and 850, that tells lenders how likely you are to repay what you borrow. It’s based on your credit history, which includes whether you pay your bills on time, how much debt you carry, how long you’ve had your accounts, and more.
Lenders, insurance companies, landlords, and even some employers may use your credit score to make decisions. A high score can lead to better loan terms, lower interest rates, and more financial opportunities. A low score, on the other hand, may result in denied credit, higher insurance premiums, or rejected rental applications.
Your credit report is the source of truth for your credit score. It contains your name, Social Security number, current and previous addresses, account information, total balances, credit limits, and your payment history. It also includes details like collection accounts, public records, and recent credit inquiries, which are times when someone requested a copy of your credit.
To see what lenders see, request your credit report and read it carefully. You’re looking for errors, outdated details, and signs of fraud. If something seems wrong, you can file a dispute and ask the bureau to investigate.
Visit Credit.org's free course on understanding your credit report for a full explanation.
Credit bureaus—also called credit reporting agencies—gather and store the information that makes up your credit report. The three major credit bureaus are Equifax, Experian, and TransUnion. These companies receive data from creditors and lenders nationwide, including banks, auto loan providers, credit card issuers, and utility companies.
Each bureau may receive slightly different information; this is why you can have three credit reports and different credit scores depending on where your data is pulled from. Make sure to check all three credit bureaus regularly.
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No, it doesn’t. When you check your own credit score, it’s considered a “soft inquiry,” which has no effect on your score. Soft inquiries can happen when you use a free credit score service, check your own report, or when a company checks your credit to send you a pre-approved offer.
“Hard inquiries” occur when a lender checks your credit after you apply for a a loan, whether it's a credit card, mortgage, or auto loan. A hard inquiry might lower your score slightly, but only for a short time. You can read more about this at the Consumer Financial Protection Bureau.
If you’ve noticed that your score varies depending on where you check it, that’s normal. Different companies use different scoring models, and they may use information from just one or all three credit bureaus. There are even multiple versions of popular models like FICO and VantageScore.
Also, scores change over time as new data comes in. A score pulled today may differ from one pulled a week later. Focus less on the exact number and more on the overall trends.
Read more about Why my Credit Score is Different on Each Report.
By federal law, you’re entitled to one free credit report per year from each of the three credit bureaus. You can request these reports at AnnualCreditReport.com, the only site officially authorized by the U.S. government.
This right is part of the Fair Credit Reporting Act (FCRA), which also gives you the right to dispute inaccurate information, ask for a free copy of your credit if you’re denied credit, and request corrections if your identity has been stolen.
Beyond your annual credit access, you can get additional free credit reports if:
These reports can help you protect yourself and monitor recent credit activity. Visit the Federal Trade Commission’s website for current guidelines on eligibility and request instructions.
It's also currently the case that the credit bureaus offer free reports every week on demand. This is not required by law, but the bureaus have continued to offer free weekly reports since the COVID-19 pandemic.
The Equifax credit report is one of the three primary records of your credit activity. It may contain different information than your Experian or TransUnion report because not all lenders report to all bureaus. That’s why it’s important to review all three.
If you find a mistake, such as an account you don’t recognize, a duplicate entry, or a missed payment that was actually paid on time, visit Equifax’s dispute center to submit a correction request.
To get a free copy of your credit report, go to AnnualCreditReport.com and request one from each bureau. You can do this online, by phone, or by mail.
When reviewing your report, look for:
For even more detail, some consumers choose to request their reports every four months, rotating between the three credit bureaus, so they’re always monitoring their credit year-round.
Make a habit of checking your reports annually. You can tie it to a key date like tax time, your birthday, or a New Year’s resolution. This regular credit review helps you stay on top of your credit history, spot potential problems, and prevent future issues.
If you use services that offer free credit scores, make sure they’re from reputable providers. Some websites only show partial information or use scoring models that differ from what lenders actually use.
You don’t need a financial expert or a paid service to improve your credit. Here’s what you can do on your own:
If you’ve been denied credit recently, request the credit report used in that decision and use it as a starting point to build a better financial path.
Your credit score isn’t shaped by chance; it’s built from your actions, habits, and awareness. You don’t need to buy gimmicks, follow rumors, or hire companies to “fix” your credit. Instead, take advantage of the tools and rights available to you, like your free reports, legal protections, and educational resources.
Need help making sense of it all? Credit.org offers free credit counseling and personalized reviews of your credit report. Our certified counselors are here to help you take control and move toward a stronger financial future.
