My Credit Score - A Lesson in Good Credit

Welcome to My Credit Score, one of the largest collections of credit advice online today. In this section of our website, you'll find helpful tutorials on every aspect of personal credit.

If you have a specific question, you can quickly search the My Credit Score library by using the Google box in the upper-right corner.

Here's the key to everything discussed in this section. Your credit score plays a major role in whether or not you can qualify for a mortgage loan. It also influences the interest rate you get from the lender. If you have a high score, you can get a lower rate on the loan, and thus a smaller monthly payment. This could save you many thousands of dollars over the life of the loan. And that is why should be asking the question: "What is my credit score, and what can I do to improve it?"

Good credit is the key to qualifying for a mortgage loan and buying a home. In this section of the website, we offer a variety of tools and tips to help you understand this connection. You are bound to find the answers you need below!

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General Credit Topics

The articles listed below will help you understand the world of credit, as it applies to the home buying process. It's a good place to start if you know very little about this subject.

How to establish credit for the first time
How do I build my credit history?
Understanding credit reports and scores in 2009
How do I improve my credit history quickly?
Credit score ratings explained - glossary and overview

Credit Reporting Companies

Who are these companies that maintain financial data on U.S. consumers? How do they compile credit reports? My Credit Score has your answers:

The three major consumer credit reporting companies
Why doesn't the data from all three bureaus agree?
What you should know about Experian, Equifax and TransUnion
What does three credit reporting mean?

Your Credit Reports

Did you know your credit report and score are two different things? Did you know a lender can pull three of them, one from each of the reporting bureaus? Did you know you are entitled by law to receive a free credit report once a year, from all three bureaus? In this section of the My Credit Score library, you can learn all about these things:

The truth about free credit reports:

Top 10 questions people ask about credit report
How to get your totally free credit report | And Part 2
My free yearly credit report - Is it really free?
Does the yearly report give me everything I need?
What is the official website for getting free reports online?
There is no such thing as a government credit report

Things that show up on your reports:
What kind of information shows up on my file?
How long does a foreclosure stay on a credit report?
Does garnishment of wages show up on my reports?

How to find and fix errors:
How to read a report to ensure accuracy | Part 2
How do I find the errors on my credit file?
How to fix errors, and why you should
How do I clean up my credit report history?
Duplicate entries on credit report can bring a score down
Removing unpaid medical bills from credit report | Part 2
Writing a letter to dispute my credit report
How do I dispute a collection item on my credit report?

Scores and Scoring

Where does my credit score come from, and why is it so important when buying a home? If I find out that my score is low, what can I do to improve it? How long does that take? You'll find answers to these questions and more in the list below.

How it all works:

Where does my score come from to begin with? | Part 2
What does it mean to me, as a home buyer?
How does my score affect my mortgage payments?
FICO scoring chart that shows important factors
What is considered a good FICO score these days?
Do they add all three scores together for an average?
Why does the lender have a different score than the three agencies?
How do I obtain a free FICO score online? | Part 2
What score is needed to buy a home in 2009? | Part 2
Is 700 a good score in this economy? | What about 750?
How does a non-US citizen establish a credit score? | Part 2

Things that may affect a score:
What made my credit score drop off all of a sudden?
How do late car payments affect my credit score?
What about overdue medical bills? | Part 2 | Part 3
What will debt settlement do to my score?
How does a debt write-off / charge-off affect my score?
What about making too many credit inquiries? | Part 2
Foreclosure was dismissed - Does it still affect me?
Spouse has bad credit - Can we still get a mortgage?
Does the mortgage pre-approval process hurt my credit?
Does canceling credit cards affect my score in any way? | Part 2
Will a loan modification hurt my score in any way?

How to improve a score:
Credit improvement for beginners and how it all works
What can I do to raise my credit score fast? | Part 2
Is it possible to raise my score 30 points in a month?
How long does it take to improve a score significantly?
After paying off debts, how long until my score goes up?
Where can I find nonprofit credit counseling services?
How can I tell if my credit is getting better?
Can I increase my credit score by paying off bills? | Part 2 | Part 3
What can I do to improve my score after a bankruptcy filing? | Part 2
Paying off collections to increase a score
Will my score rise when an account is removed from my report?
How long will it take to reach 700 or above? | Part 2
I can't get my credit score over 600 points
What happens to a score when bankruptcy expires / drops off?
Can I use a secured credit card to boost my score? How does it work? | Part 2

Managing Your Debt

We are frequently asked the question: "Is my credit score the only thing a lender cares about?" No. When you apply for a loan, the lender will also consider the amount of debt you are carrying (among other things). If you have too much debt in relation to your income, you might not qualify for a loan. Here are some more articles about this relationship between your credit score and your debt:

What is the average amount of credit card debt in the U.S.?
Can too much debt hurt my chances of buying a home?
Can I negotiate a credit card debt reduction?
Can creditors garnish my wages for unpaid debt?
Which debts should I pay first when money is tight?
Where can I find legitimate non-profit debt counseling?
What is the best way to pay off my current debts?
Can a collection agency sue me for debts I owe?
How does credit card debt settlement work?
Where can I get help reducing my current debt?

Educational Videos for Home Buyers

We realize that some people learn better by watching and listening, rather than reading. So we have begun to add videos to the My Credit Score library. We hope you find these videos helpful.

Additional Tips From Our "Captain Credit" Series

How to Buy a House With a Bad Credit Score
In truth, I probably shouldn't be revealing this secret tip. Once the word gets out, the blog will be flooded with visitors, and my email inbox will burst at the seams. Oh well. I'm going to let the cat out of the bag anyway.

How to Rebuild Your Credit Score
In 2009, it will be tougher to qualify for mortgage loans. This is a direct result of the economic crisis of 2008. So if you are one of the many Americans with a low credit score, you should work hard to improve it. In this lesson, we will look at three important steps in your quest to better financial health.

Buying With Poor Credit and No Money Down - No!
I am truly baffled. Despite all of the news about our economic problems, credit crunch, tougher lending standards, foreclosures and the like ... I still get questions every week from people wanting advice on how to buy a home with bad credit. My answer is, and will continue to be, don't do it! It's not the advice you want to hear, but it's the advice you need to hear.

Update on Credit Crisis and Home Buying
These days, you need excellent credit in order to qualify for the best rates on a mortgage loan. In this article, I'll explain the economic changes that brought this about and what it all means to home buyers.

What Is My Credit Score?
This is one of the most common questions among home buyers, and for good reason. As a home buyer, you know that mortgage lenders are going to analyze your credit score (among other things), so it's wise for you to do the same.

Get a Copy of Your Free Credit Report
Everybody is shouting about free credit reports these days, and it's enough to make your head spin. Thankfully, the Captain is here to help you make sense out of it all.

How to Improve Your Credit Score
Have you conducted some financial research and found that your credit score is relatively low, compared to the national average? If so, you'll want to improve your score before applying for a mortgage loan. Captain Credit has some tips on how to go about it!

Your Totally Free Credit Report Online
Yes, there are actually several ways you can get your reports online for free. To help you understand your options, let's take a quick look at where your credit reports come from in the first place.

Credit Score Needed for Home Buying
You probably already realize that a higher score will make the home buying process easier. It will also help you get a better interest rate on your mortgage loan. But what kind of score is needed for home buying purposes? This article examines the subject in detail.

How to Fix Your Credit Report
This is a topic that every home buyer should understand, because it is closely related to the mortgage application and approval process. Thus, it's an important topic for home buying in general.

A Better Score in 2008
Good credit has always been important for home buyers. But these days, in the wake of the subprime mortgage crisis and tougher regulations, it's more important than ever to have a good credit score when buying a home. The article will help you get one!

Bad Credit Report Repair
Did you know that credit repair is one of the most popular topics within the realm of consumer finance? It's true. I frequently review Internet search data to see what topics people are researching online, and this topic comes up a lot!

Buying a House With a Score of 656
A reader wanted to know if a credit score of 656 was enough to get a loan and buy a house. It's a good question, and it opens up a whole range of topics. In this article, I've done my best to answer this reader's question in light of the current housing market and tougher lending standards. I think you'll find it informative and worth reading.

Why is My Credit Score Important?

This is one of the most common questions among home buyers: "Why is my credit score so important during the home buying process. The short answer is that it helps you qualify for a mortgage loan, and also to get a decent interest rate on the loan. The longer answer is that the United States is a credit-based economy, but I'll spare you that kind of lesson.

Here's what it all boils down to. If you can afford to pay cash for a house, then your credit score will not be a factor. But if you are like most people, you need a mortgage loan to cover the cost of the home (or most of it). When you apply for a home loan, the lender will review your financial background from every angle. They will examine your debt, your income, your current assets and cash reserves, and -- yes -- your credit score. This is why so many buyers want to know: "How can I improve my credit score before buying a home?" By achieving this goal, you'll increase your chances of qualifying for a mortgage with a low interest rate. And that is exactly what you want to do when buying a home!

Other Articles on the Main Website

Early on in the home buying process, you should review your credit situation. That way, if you need to improve your credit score, you can start right away. Improving a credit score takes time, so you want to find out where you stand by (A) obtaining your credit report and score, (B) comparing yourself to the national average, and (C) working to improve your credit score if necessary.

The free credit score information below will help you interpret your credit score and work to improve your score if needed.

Your Credit Report - Helpful Tips for Home Buyers
When was the last time you saw a copy of your credit report? Do you know your credit score? If you can't answer these questions, you have some homework to do.

10 Ways to Boost Your Credit Score
This is the absolute fastest way to correct errors on your credit report and raise your credit score. However, it can only be done through a mortgage company or a bank.

I Want a Free Copy of My Credit Report
These days, there are literally thousands of websites online that offer free credit reports to consumers. But many of them come with some sort of catch, like maybe you have to sign up for some kind of credit monitoring service in order to get your free report. So in reality, it's not really a free credit report is it? Here's how to cut through the confusion to get your free report.

Credit Repair 101 - What Home Buyers Should Know
Credit repair is one of the most popular topics among home buyers. But it's also a subject of great confusion. This article will help you separate fact from fiction on the subject of repairing credit.

All About Your Credit Score
Having a high Credit Score can make a difference of up to 18% in loan repayment costs. So it's to your advantage to keep your score as high as possible. This article explains how to go about improving your score before buying a home.

Home Buying Wisdom: Avoiding the Bad Credit Blues
Applying for a mortgage loan only to find out you have bad credit is a surefire recipe for the home buying blues. After all, bad credit will reduce the chance of getting a good interest rate on your loan. Here's how to avoid these bad credit blues.

What is a Good Credit Score in the U.S.?
If you ask a handful of credit experts what makes a good credit score you will probably get a handful of different answers / ranges. So I've taken ten articles on this subject from ten reputable websites and averaged them out.

The Truth About Credit Reports
It's a good idea to know what's on your credit report before lenders begin to pull it. You may be surprised to learn that the three major credit-reporting agencies could all have different information about you on file. Here's what else you should know about this important subject before buying a home.

How Can I Improve My Credit Score - Starting Today?
FICO scores are important for a variety of reasons, but they are especially important for people who are planning to buy a home. So it's no surprise that one of the most common questions among home buyers is - How can I improve my FICO score before buying a home?

How to Review Your Credit Report
This article will educate first-time home buyers on the relationship between credit and mortgage loans, and why a thorough review of one's credit should be part of your home buying process. How to request copies of your reports, review them for errors, and make corrections if necessary.

How to Improve Your Credit Score
Having a good credit score will make the entire home buying process easier. In this tutorial, we've compiled advice from a half-dozen expert sources to help you improve your credit score.

5 Steps to a Higher Credit Score
When it comes to your credit, an ounce of prevention is worth a pound of cure. It's much easier to maintain a good score than it is to improve a bad one. So follow these five steps to credit success at all times, but especially before you begin the home buying process.

How is Your FICO Score Determined?
Perhaps you're familiar with the FICO scoring system used by credit companies. But do you know how that score is determined? This is an important concept for home buyers to understand because it has everything to do with getting qualified for a mortgage loan.

How to Increase Your Credit Score
Over 30 million Americans have less-than-perfect credit, but it is really quite simple to increase your credit score. Sure, it takes discipline and motivation on your part, but you'll be surprised at how straightforward the process is.

Home Buying 101 - How's Your Credit?
Continuing in the home buying process, you need to take a good, hard look at your credit situation. Start by ordering copies of your credit reports from all three reporting agencies (Equifax, Experian and TransUnion).

FICO and You
Although it may not be a term you're familiar with, the term FICO can be a determining factor as to whether or not you qualify for a credit or loan.

14 Common Credit Mistakes
Credit needed to buy real estate is not the same as good credit. Besides your credit score, lenders consider your debt-to-income ratio and other credit matters.

Credit Help: Buying Real Estate is Not Like Buying a Car
You may be shocked at some of these tips because this information runs contrary to what other so-called experts tell you.

Good Credit Score? Getting the Most Out of Your Mortgage
Sometimes so much is talked about how to solve the problem of having bad credit, but what about when you have an excellent credit rating?

Buying a Home - How Credit Will Affect You
One of the first things you want to do when considering the purchase of a home is to order your credit report. This article will teach you how.

Credit Scores are Not Universal
You could pull your credit score from all three credit bureaus and find that they not only don't match each other, but don't match the FICO score your lender accesses.

I hope you have found the My Credit Score library helpful, and I wish you well in your home-buying process. If you have questions about anything you read on this website, be sure to visit our Q&A blog. You can click the "Ask a Question" link to email us. We post answers on the blog, just like the ones you have seen above.