How to Break Down a Credit Score

When you get a copy of your credit report, you don't get just one number. You get a lot of information that you'll need to break down to understand. In addition to an overall score, you typically receive the same credit history on your report as any creditor would when deciding whether to offer you credit.

Things You'll Need

• Credit report

Instructions

1. Look at your FICO score, which will be between 300 and 850. How that number is calculated is proprietary knowledge of the Fair Isaac Corporation but it is based on very specific information. That information breaks down as: 35 percent payment history, 30 percent outstanding debt, 15 percent how long you've had credit, 10 percent new credit and 10 percent types of credit.

2. Find potential problems on your credit report. This section may include late payments, accounts that have been sent to collection, bankruptcies or other problems. It also includes items that may not be negative but that a lender would want to look at in greater detail, such as transferred accounts.

3. Double check your accounts in good standing. Not all of your accounts may be listed on every credit report, although it is in your best interest to have all of your positive accounts on your credit history.

4. Go over your history of account balances. This section should only list up to the past two years of your monthly account balances, with a breakdown by account. Not all creditors report monthly balances, however.

5. Check the listed requests for your credit history. Don't be surprised if you don't recognize all the names in this category. Credit reporting agencies usually break them down into two categories: inquiries shared with everyone and inquiries shared only with you. Pre-approved credit card companies are one type of creditor that might have asked for your credit report without your knowledge.

Tips & Warnings

• If you feel that any information listed on your credit report is incorrect, you can dispute it through the credit reporting agency that has listed it. If all three agencies list it, you may have to dispute it with all three.

• Some creditors will report information to only one of the three main credit reporting agencies (Experian, Equifax and TransUnion), so some information may show up only on one version of your credit report.

• Not all credit reports will include your FICO score. You may need to request it separately.