1. Credit Score What is a credit report and why is it important to you?
A credit report is a record of your credit history that includes information about: Your identity, your existing credit, Your public record, Inquiries about you.  Your credit report is important because lenders, insurers, employers, and others may obtain your credit report from credit bureaus to assess how you manage financial responsibilities.
How is a credit score determined?
This is not the only way to get a credit score, but the FICO score is the measure that is most commonly used by lenders to determine the risk involved in a particular loan. Due to the proprietary nature of the FICO score, the Fair Isaac company does not reveal the exact formula it uses to compute this number.
What are the ranges of credit scores?
Credit scores range from 300 to 850, with higher scores being better. Here's a rough guide to what various score ranges mean: : Poor credit. It is generally accepted that credit scores below 550 are going to result in a rejection of credit every time.
How is the credit score broken down? Please give the percentages.
This little number controls a lot more in your life than you think. It has a direct impact on your ability to take out a mortgage, credit card or other loan and on the interest you’ll pay for it. The higher your FICO score, the more money you’ll save yourself. For example someone with a score above 760 could literally pay thousands of dollars less per year in interest on their mortgage than someone whose score is below 620.
35 percent = payment history
30 percent = amounts owed on each account
15 percent = length of credit (how long you’ve had the accounts)
10 percent = new credit (new accounts opened or inquiries made for more credit)
10 percent = types of credit in use (e.g. credit card, department store, mortgage, or school loans

2. List the five levels of credit scores and write a sentence describing each one. Payment history: 35 percent of the total credit score is based on a borrower's payment history, making the repayment of past debt the most important factor in calculating credit scores. Credit utilization: 30 percent of the total credit score is based on a borrower's credit utilization -- that is, the percentage of available credit that has been borrowed. Length of credit history: 15 percent of the total credit score is based on the length of time each account has been open and the length of time since the account's most recent action. New credit: This is the fourth of a five-part series examining what goes in to creating your FICO credit score -- the three-digit number that helps determine how much you can borrow and on what terms. Each part of the series will take an in-depth look at one of the five basic components of the credit scoring model. Today: new credit. Credit mix: This is the fifth and final installment of a series examining what goes in to creating your FICO credit score -- the three-digit number that helps determine how much you can borrow and on what terms. Each part of the series takes an in-depth look at one of the five basic components of the credit scoring model. Today: types of credit used. What are the three credit reporting agencies? Perhaps you've heard of the three major credit reporting agencies (also sometimes referred to as credit bureaus). They are Experian, TransUnion, and Equifax. But there's a lot of confusion when it comes to what these credit bureaus actually do. How often should you check your credit reports? We have three major credit bureaus here in the United States: Experian, Equifax and TransUnion. Each is required to let you see your credit report once every 12 months. You can look at each one just once a year, and they might have different data on them, making this question a bit difficult to give a straight answer to. What are some tips that can help students establish a sound credit history? - Keep your own checking account and savings account. Do not overdraw your account. - Establish a credit card in your own name, and use it responsibly. - Pay bills before the due date.

3. - Limit the number of credit cards you own
- Limit the number of credit cards you own. Too much open credit, even if the accounts have zero balances, will negatively affect your credit score. -Close unused accounts — do not just cut the cards up — or the account will still show as an open line of credit on your credit report. Ask the issuer to state on your credit report, "account closed by consumer." -Limit the number of credit inquiries. Every time you apply for credit, it shows as an inquiry to your credit report. Too many inquiries are viewed negatively by lenders. -A large number of recently established credit accounts may hurt your ability to be granted credit. -Periodically obtain a copy of your credit report to verify that information reported is accurate and to look for ways that you can improve your credit. Who is allowed to see your credit reports? Why do they need to see the reports? The Fair Credit Reporting Act (FCRA) specifies who can see your Equifax credit report. Businesses must have a "permissible purpose," as defined in the FCRA, to obtain your credit report. Otherwise, only you and those you give written permission to can access your credit report. What are some procedures to get a credit score corrected? List them. -Before you contact any credit bureau about a credit report error, make sure you have some proof to support your claim. For instance, if you find a mortgage that was opened in your name in 1974, but you were born in 1972, you should provide proof of your birthdate. -It may be old-fashioned, but the best way to dispute an error on your credit report is to draft a dispute letter. You’ll send this letter to the credit bureau(s) reporting the error to get it corrected. Make sure to send it “return receipt requested” so that you’ll know when it’s been received. The FTC has a great sample dispute letter; use that as your guide. - Seriously. Copy the letter, the documents you’re using as proof and the page(s) of your credit report with the errors clearly marked. Keep these documents filed away so you can easily find them later. Once you have your copies, mail your dispute letter.