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Credit scoring is a scientific method that uses statistical models to assess an individual's credit worthiness based on his or her credit history and current credit accounts. Credit scoring was first developed in the 1950s, but has come into increasing use in the last two decades.

In the early 1980s, the three major credit bureaus, Experian, Equifax and Trans Union, worked with the Fair Isaac Corporation to develop generic scoring models, which allow each bureau to offer a score based solely on the contents of the credit bureau's data about an individual. Creditors — especially those in the mortgage industry — frequently use these scores to determine who will receive a loan. They can order your score, commonly called a FICO score, from one of the bureaus, but it only draws upon information from your credit report. Individual creditors often also consider other information, such as your salary or how long you have been employed at the same company, when making loan decisions.

Now you know the type of score lenders use when deciding whether to give you that loan. Along with your Personal Credit Score, you will receive personalized analysis and tips that can help you improve your credit rating. So know the score today!

Each credit bureau has its own unique system for compiling credit scores. However, the scoring models have been normalized so that a numerical score at one bureau is the equivalent of the same numerical score at another. Thus, a score of 700 from Equifax indicates the same creditworthiness as a score of 700 from Trans Union or Experian, even though the calculations used to determine those scores are different at each bureau.

A computer-generated score is compiled using information from an individual's credit report, such as how much money is owed and whether payments have been made on time. Then that score is compared to the credit performance of consumers with similar profiles. The scoring system awards points for each factor that helps predict who is most likely to repay a debt. This total number of points, or credit score, helps predict the likelihood that a consumer will repay a loan and make payments on time.

Credit scores range from 375 to 900 points, but those numbers mean little on their own. They become meaningful and useful within the context of a particular lender's own cutoff points and underwriting guidelines.

In general, you are likely to be considered a better credit risk if your FICO score is high. Under mortgage lending guidelines, for example, a score of 650 or above indicates a very good credit history. People with these scores will usually obtain credit quickly and easily, and will have a good chance to get it on favorable terms.

Average FICO scores fall between 620 and 650, and indicate basically good credit, but also suggest to lenders that they should look at the potential borrower to assess any particular credit risks before extending a large loan or high credit limit. People with scores in this range have a good chance of obtaining credit at a good rate, but may need to provide additional documentation and explanation to the lender before a large loan is approved. This means that their loan closing may take longer, making their experience more like that of borrowers in the days before credit scoring, when every individual was researched.

A score below 620 may prevent a borrower from getting the best interest rates, as they may be considered a greater credit risk — but it does not mean that they cannot get credit. The process will probably be lengthier and, as noted, the terms may be less appealing, but often credit can still be obtained.

Knowing your credit score is important whether you're applying for a new credit card, shopping for auto loans, or considering a new mortgage. Lenders use credit scores to help them decide if you are a good credit risk. The higher your credit score, the more likely it is that you will qualify for the best rates possible.

Until recently, it was difficult for consumers to find out their credit score. Nowadays, you can see your score in seconds!

The three major credit bureaus, Experian, Equifax and Trans Union, have similar scoring models that generate credit scores based solely on their credit report data on you. There are also other credit scoring models in use, so your credit score may be different depending on which model is used and upon which credit report your score is based.

Additionally, if you are working with a lender, he or she should tell you the reasons for a low score if that score is a factor in delaying or denying your loan application. A list of "score reason codes" comes with each credit score report a lender receives. These codes explain the top reasons your score was not higher, such as too many inquiries or delinquency on accounts.

Did you know you can get a FREE credit score when you order the 3 Bureau Online Credit Report? See all three of your credit files in one, simple report. Plus, you have the option to see your credit scores based on all three of your reports.

So, your credit's not great. It may even be bad, and then you want to know how to clean it up.

Unfortunately, there are no quick-fix solutions when it comes to your credit history. You can't sweep late payments away or toss out charge-offs. But with patience and discipline, you can rebuild your credit sooner than you may think.

Companies may tell you they can make old debts disappear or help you start an entirely new credit history. However, these plans are illegal and could cause you to commit fraud. These "credit-repair services" say a bankruptcy or bad credit history will make it impossible for you to get any credit for years to come. Certainly, a poor credit history will have an impact on your ability to obtain new credit, but many options exist for people who are ready to begin rebuilding their own credit file. Remember, there's nothing anyone can legally do to improve your credit rating that you can't easily do yourself for free.

The first step is to obtain a copy of your credit report. One easy and inexpensive way to do this is by ordering a copy of your credit report online. Check it carefully and dispute any information that is inaccurate.

If you are overwhelmed by your debt and anticipate not being able to pay the minimum balances, you may consider credit counseling or a debt repayment plan. A credit counselor helps you devise a schedule to pay your debts, but there is no signed commitment. Seeking counseling doesn't show up on your credit report, but you are responsible to stick to the plan.

However, a debt repayment plan can affect your credit status. Creditors may report that an account is in a debt repayment plan, that some payments (if any) have been missed, or that concessions have been made to help reduce your debt to a workable amount. Under the Fair Credit Reporting Act, this accurate information about your accounts can stay on your credit report for up to seven years. In addition, your creditors will continue to report information about accounts that are handled through a debt repayment plan. However, if you can avoid filing bankruptcy, a debt repayment plan may be worth the trouble. Keep in mind that write-offs and late-payment notations may stay on your credit report for seven years, whereas a bankruptcy can stay on for up to ten and is a matter of public record.

If you prefer to manage your credit on your own, you can plan a credit strategy much like you would a budget. Apply for a major credit card if you only have local credit, close old unused credit accounts and keep tabs on the number of inquiries in your report.

If you're having trouble getting a major credit card and have no other credit, start small: apply for credit with a local business, such as a department store or a local bank or credit union. These local merchants may have lower credit standards than larger lenders and can help you to establish a track record of paying bills on time. Before you apply for credit, make sure the credit grantor reports to one of the major U.S. credit bureaus so you can build your history.

You could also ask a friend or family member to cosign your loan or credit-card application or obtain a secured card, which is guaranteed by a deposit you make with the card issuer.

Finally, make sure you make all your payments on time. Lenders give more weight to recent payments, so start showing you are a solid credit risk now. Repairing your credit history is not a quick, easy process, but with some patience and hard work, you can rebuild your credit in a relatively short time and be on your way to a positive credit future.

Whether you’re a first-time buyer or a seasoned homeowner looking to move up to a bigger or better house, how you have managed your consumer credit rating can have a real impact on the amount and terms of your next mortgage.

Naturally, if you have kept your credit use reasonable and always paid your bills on time, you will most likely have very few difficulties obtaining a mortgage loan. But, what if you are one of the many Americans whose credit report is less than perfect?

Contrary to popular belief, it is not impossible to obtain a mortgage with an imperfect credit rating. After all, mortgage lenders are in the business of providing loans, and have it in their interest as well as yours to find an appropriate way to finance your home purchase.

In the case of a single bad mark on an otherwise good credit history, many mortgage lenders will simply ask for a written explanation of the late payment. If the explanation is reasonable and believable, many lenders will overlook the isolated problem—especially if it occurred some time ago and your credit has been good since.

Indeed, as far as lenders are concerned, the most important time period in your credit history is just the preceding year or two.

According to guidelines established by the Federal National Mortgage Association (Fannie Mae), indicators of good credit do include some leeway for occasional late payments. Thus, lenders will look at the following:

	Revolving credit (e.g., credit cards), which should show no payments, 60 days or more late and no more than two payments, 30 days late;
	Installment credit (e.g., an auto loan), which should show no payments, 60 days or more late and no more than one payment, 30 days late;
	Housing payments (e.g., mortgage or rent), which should, not surprisingly, show no late payments (this can be proven by the payment history from a mortgage lender or by the borrower’s canceled checks for the past 12 months).

As credit scoring in mortgage-loan decisions has become more sophisticated, lenders have also begun looking at other factors in your credit history as well. They might be concerned whether or not your credit cards are “maxed out” (indicating possible future difficulties in managing debt and making payments) or, conversely, if you have large lines of credit available (that you could at some future time run up into unmanageable debt).

Some lenders will also look at how many inquiries have been made into your credit report recently, interpreting a large number of inquiries as a sign that you have applied for a large amount of credit lately. Applying for numerous lines of credit might indicate that several other lenders have turned you down, or that you are in the process of accumulating new credit accounts, which might leave you with too much credit available to be a good credit risk.

Credit scoring can also work to your benefit, helping to overcome potential problems like a high debt-to-income ratio or a slightly imperfect credit past. Scoring also considers “compensating factors” that Fannie Mae guidelines indicate might justify some degree of risk to the lender. These compensating factors include the following:

	A large down payment;
	An energy-efficient property (e.g., with up-to-date heating and power systems);
	Previous large housing payments (such as high rent), which show the borrower’s ability to channel a larger-than-normal proportion of income to payments;
	A history of good credit and the potential to accumulate savings in the future (despite a current low net worth);
	The likelihood of career advancement and earnings increases due to strong education or job training (this is particularly helpful to young borrowers who carry student loan debt); and
	A substantial net worth (despite current low earnings).

Knowing about these compensating factors — and which of them are at play in your own situation — can help you to get the loan you need for the home you really want. But, you also need to know what your credit history looks like on paper to be able to optimize your borrowing ability. For example, you may have cut up a credit card years ago, but never bothered to actually close the account. This account shows up on your credit report as available credit, which lenders may think adds to your risk. The time to close this unused and unnecessary account is before you apply for a mortgage.

In addition, you will want to be confident that the information in your credit report is accurate. Inaccuracies in your credit report — or, worse, the damage done by credit or identity fraud — can seriously impact mortgage lenders’ likelihood of offering you a loan.

Many financial planning experts recommend checking your credit report on a regular basis in order to keep tabs on the information placed on it. Routine checking on your part allows you to stay on top of what credit grantors, including mortgage lenders, will read about you when they check your credit history, and enables you to dispute any inaccuracies and catch fraud before these problems impact your mortgage loan. Disputing inaccuracies can take up to 30 days to resolve, so taking care of them well before applying for a mortgage is also important.

ConsumerInfo.com makes it easy for you to order a copy of your credit report, compiled by one of the three national credit-reporting agencies, online. In addition, another very effective way to see all of the information that mortgage lenders will be looking at when considering your application, is to order a triple merged 3 Bureau Online Credit Report, which shows and explains the information on your credit report as compiled by all three of the national credit bureaus, Equifax, Experian and Trans Union.

The information provided by your credit report can be invaluable in understanding your credit rating as mortgage lenders see it, enabling you to dispute inaccuracies and know best how to present your correct credit history and circumstances in order to get the mortgage you seek.

If you suspect that you have become the victim of identity theft, the first thing you'll need to do is get copies of your credit report from all three national credit bureaus to see for yourself what activity has been added to your credit file. If you certify that you suspect you are the victim of fraud, you are entitled to a free copy of your credit report from each bureau. Contact their fraud hotlines for assistance at the following telephone numbers:

Don’t be a victim of credit theft: Make sure the businesses with which you deal are protecting you!

The next time you use your credit card to make a purchase in a shop, watch what happens with your card. The following steps may add a few seconds to the length of your transaction, but can help protect all consumers from the fraudulent use of their cards. In order to prevent credit fraud, the cashier should perform the following steps:

	Checks the embossed account number, comparing it to the printed number beneath it (the first four numbers should match) and looking for signs of a re-embossed number (which will likely be uneven and/or crooked).
	Glances at the sides of the card-legitimate cards are made of white plastic, so if the sides of the card are any other color, the cashier can be sure it is a counterfeit.
	Look over the card for the correct logos, hologram, and signature panel—credit card issuers carefully standardize all of these.
	Verifies the signature on the sales draft against the signature on the card.
	You might also pay attention to, or even ask about, how the business handles credit-related paperwork and information.

	Store all receipts and ledger tapes in a secure place?
	Destroy past receipts and ledger tapes when the data is no longer needed?
	Avoid retaining magnetic stripe data once a transaction has been authorized?
	Handle lost or left-behind cards promptly and carefully?

Magic numbers used to be for lucky lottery winners and experienced hackers only. Cracking the code was a challenge reserved for the criminally elite. Now, however, in an era of passwords and Personal Identification Numbers (PINs), it doesn't take much to crack the code and open the proverbial vault. Thieves can hit the jackpot by stumbling upon your credit card number — which is why most of us are now taking greater precautions with our credit card information.

But, have you considered that your social security number (SSN) could also be a magic code for identity crooks? This nine-digit code gives thieves access to your medical, financial, credit, and educational records. If thieves have your name and SSN, then they can apply for credit cards in your name, open bank accounts, and even apply for jobs. And you will be left to deal with the consequences. There are no legal restrictions on private company use of SSNs, and many states still use your SSN for your driver's license number. You've learned that being careless with your credit cards could cost you, but how can you protect yourself and your social security number?

	Don't print your social security number on your checks or give it out unless absolutely necessary.
	Ask creditors and merchants if you can substitute a special password or code to use instead of your SSN.
	Order your Social Security Earnings and Benefits Statement annually to check for fraud by calling 1 (800) 772-1213.

Until a few years ago Internet security wasn't given much thought. The Internet community encouraged the sharing of data and ideas; the common goals of the Internet users made boundaries and restrictions unnecessary — or so it seemed at the time.

As the Internet became more of a commercial tool, the need for a secure method of online purchases and messages between a customer and retailer became a necessity. This is where the SSL (secure socket layer) encryption comes into play.

SSL encryption is software that prevents anyone from intercepting and reading data being transferred between the customer and the retailer's database. This makes SSL ideal for accepting sensitive information over the Internet, such as credit card numbers or access to passwords.

Secure links between your computer and another computer over the Internet are based on a code system called public key encryption. When the computer forms a secure connection over the Internet, it will be using the communication protocol called SSL. You can be sure of the secure connection by appearance of a key or a closed padlock icon at the bottom of your browser's screen. Also, when your computer makes a secure link through the Internet, the URL will begin with https//: rather than http//: located in your browser's address window.

Each computer generates a set of codes, which encrypts the information. From these codes, each computer generates two "keys": one private and one public. Your computer keeps the private key secret, but sends out the public key to the other computer, which then uses that key to encode messages that only your computer can read, using the private key as a decoder. Through this process, only these two computers have a copy of the respective keys.

SSL is an enormous step toward making the Internet secure. The level of security provided by SSL encryption can support a variety of needs for the many different applications available today. SSL is the standard for a secure method in terms of privacy, integrity, and authenticity.

The question of better security between an online or physical transaction has a simple answer. SSL encryption offers two levels of security: the 40-bit ("low" or "weak") that offers over a trillion possible code combinations, or the 128-bit ("high" or "b") with nearly immeasurable code combinations.

Here's how secure a 128-bit key is: it would take 250 workstations working simultaneously around-the-clock, an estimated 9 trillion times the age of the universe just to decrypt a single message. It's safe to say SSL is extremely sophisticated software. In comparison, do you feel safe giving your credit card to a waiter who disappears with the card for a few minutes? Or to an employee at a store, who keeps a copy of your credit card information? It is far more risky to trust your credit card carbons to an underpaid fast food employee than to send the number via a secure encrypted web page.

With the proven security and protection of SSL, you can be confident of your transactions while you are taking advantage of the many conveniences of Internet shopping.

While you undoubtedly have more at stake when it comes to protecting your credit rating than any large organization, credit card companies and businesses that accept cards also have a real interest in preventing credit card fraud.

Because consumers are usually not liable for more than $50 of fraudulent charges on a card, fraud is a very expensive proposition for banks, card issuers, and businesses. Of course, these expenses are often passed on to consumers in the form of higher prices, so ultimately everyone pays.

But credit card companies are using sophisticated computing technology to prevent fraud before a criminal can run up huge charges with a stolen card or account number.

"Neural network" computing allows credit card companies to screen transactions, analyzing them for signs of fraud. The neural networks combine powerful hardware with software that detects patterns and correlations in large databases. This allows the credit card company to compare a transaction with your normal use patterns within minutes after your card is used and flag transactions that do not match regular spending habits.

Once a charge has been identified as possible fraud, the card issuer will often block the account against future charges until it can verify the legitimacy of the charge with the cardholder.

Although protecting your credit and credit rating against fraud is a real benefit to you, a block on your account can lead to frustrating surprises for you if you go on a rare vacation or unusual shopping spree with your credit card. Being aware of activity that might trigger a flag can also help you avoid such difficulties.

While credit card issuers who use these systems are reticent about what exactly might lead to a charge being flagged (they don't want to teach criminals what to avoid), there are some obvious behaviors that might lead to an account being blocked.

The computers look at both your individual card-use patterns and known patterns for fraud. Thus, an atypical burst of activity — such as a series of purchases in a different city of foreign country on a card which has previously been used only at home — or a charge that is particularly common among thieves, might cause the card company to block the card.

One of these types of transactions is a late-night fill-up at a gas pump. Card thieves will often test a stolen card for usability with this kind of purchase, which can be made anonymously at a pay-at-the-pump machine. If the card still works, the thief knows the victim hasn't reported the card lost or stolen yet and that the time is ripe for a spending spree. Even without a gas-pump check, a sudden flurry of activity can indicate fraud because thieves know they probably don't have long before the missing card is reported.

Other triggers are the charge of an expensive item that could be resold quickly, such as a computer, with a card usually used only for small purchases, or a charge that is over the account's limit, which a thief naturally will not know. A sudden series of cash advances also warns the system that something may be amiss, as one fraud tactic is to take a stolen card from bank to bank gathering cash before the window of opportunity closes.

Therefore, if you know that you will be going on a trip or making an unusually large purchase or cash withdrawal, it is a good idea to let your card issuer know in advance. A simple phone call to the credit card company can prevent the hassle and frustration of having your card refused mid-vacation or as you buy that new computer.

Contrary to what many people believe, the Internet is actually one of the safest places to use your credit card for making purchases.

It is surprisingly easy for criminals to copy a physical credit card, with about $20 of equipment from an electronics store and just a few seconds with your card. Therefore, handing your card to a waiter who carries it away for several minutes involves the risk that your card might be copied.

And even without the card itself, a thief can purchase just about anything over the phone with nothing more than your name, account number and card's expiration date — all of which you reveal to the person at the other end of the line whenever you make a telephone order.

Naturally, doing business with reputable enterprises minimizes this risk, as they will have carefully chosen and trained their employees, but there remains the fact that these transactions include certain inherent risks.

In contrast, companies who transact business over the Internet, like ConsumerInfo.com, make use of cutting-edge encryption software that encodes your credit card number and expiration date before it is transferred, making it almost impossible for would-be criminals to obtain your account information.

This difficulty provides a further disincentive to attempts at online credit fraud. After all, why would a thief bother with expensive computers and hacking software when hundreds of account numbers can be lifted from the unshredded paperwork in people's trashcans?

While it is good to know that others are working to prevent fraud, it is still important that you take steps to safeguard yourself.

Regardless of the technologies being employed, you should still carry as few cards around with you as possible, shred or tear into small pieces any documents bearing credit account information (including offers of new credit cards you receive in the mail) before you throw them away, and never give out credit card information to anyone unless you can verify that they are a legitimate business. If you make purchases over the phone, for example, only do so if you initiated the call. And if you shop online, check out the company's security procedures — a legitimate Internet business will explain them clearly in an easily accessible part of their Web site (often the order form itself).

Even when you visit local restaurants and shops, you can pay attention to the security precautions they take with your credit card. If you feel they aren't careful, encourage them to change their procedures, or consider taking your business elsewhere.

They are seen or heard everywhere, from newspapers and radio, to television and the Internet. These ads offer to erase negative information on your credit file — for a price. Have you read any advertisements like these that guarantee to fix your credit report? "Credit problems? No problem!" Or, "we can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!" If you thought they sounded too good to be true, you may have been right.

Credit-repair companies can do no more for your credit legally than you can. And though they cannot provide you with a clean report, some may encourage you to violate federal law. These credit-repair operations work by seeking out consumers who have been denied loans or credit based on their poor credit histories, or people who have filed for bankruptcy. These repair companies promise to provide consumers with instructions on how to develop a new credit identity. This method of credit repair is called "file segregation."

In this file-segregation scam, the so-called credit-repair companies recommend that you get an Employee Identification Number (EIN) or Individual Taxpayer Identification Number (ITIN) and they encourage you to use it in place of your true Social Security number, which is illegal.

In February of 1998, the office of the Treasury Inspector General for Tax Administration (TIGTA) arranged over one hundred investigations of credit-repair companies and individuals that sold or used the employer identification numbers to defraud creditors. This sting operation resulted in numerous charges such as misrepresenting a Social Security Number, mail fraud, and conspiracy.

The Federal Trade Commission (FTC) and the National Association of Attorneys General announced legal action against many of these credit-repair companies and are warning consumers to use their better judgments before paying for useless services. Be wary of any company that claims they can provide you with a "brand new" credit file.

The TIGTA has conducted over one hundred investigations of individuals who sold or used employer identification numbers to defraud creditors. This investigation has resulted in 58 charges stemming from misrepresenting a SSN to mail fraud and conspiracy. TIGTA is still investigating over two hundred additional people who have illegally submitted information in regards to obtaining an EIN number as the credit repair company instructed them to do.

These scam tactics are expensive for both businesses and consumers. The TIGTA has estimated that nearly $400 million in fraudulent loans and credit has been established across the country; a cost that often is absorbed by the businesses providing credit, and eventually by their customers.

Remember that no one can legally remove accurate information from your credit report. The law does, however, allow you to dispute information in your file that is either inaccurate or incomplete. You must identify each item in your report that you want to dispute, explain the reason why you are disputing the information in question, and then request a re-investigation into your file.

If all the information turns out to be accurate, the only cure for negative information on a credit report is time and keeping your payments current. The accurate but negative credit information will be removed from your credit report after seven years from the time it first appears. In the case of bankruptcy, the information may remain on your credit report for up to 10 years.

This law prohibits credit-repair companies from charging a fee until their services have been performed. It also requires them to tell you about your legal rights. They must provide a written contract that details what services are to be performed, how long it will take, the total cost of the service, and any guarantees that are offered. According to this law, these contracts must also explain that consumers have a three-day grace period to cancel the service at no charge.

Under this law, you have the right to sue in federal court if the company defrauds you. It allows you to seek your actual loss or the amount you paid the company, whichever is more. You can also attempt to claim punitive damages: an amount of money to penalize the company for breaking the law.

The Credit-Repair Organizations Act also allows a class action suit in federal court. These are cases where groups of consumers can file jointly with one lawsuit. If you win, the other side has to pay your attorney's fees.

Find out what your state laws are regarding credit repair companies. Some may be helpful if you've lost money to a credit repair scam.

Report them as soon as you feel you are being scammed.

Contact your local consumer affairs office or your state attorney general (AG). (Many AGs have a toll-free consumer hotline.)

If you wish to file a complaint with the FTC, contact the Consumer Response Center at the following:

	Web Site	http://www.ftc.gov/
	Phone Number	202-FTC-HELP (382-4357)
	Phone Number for the Hearing impaired	202-326-2502
	Mailing Address	Consumer Response Center Federal Trade Commission 600 Pennsylvania Ave NW Washington, DC 20580

Although the commission cannot resolve individual problems for consumers, it can act against a company if it sees a pattern of possible law violations.

Don't become a victim of a credit-repair scam. You can do everything a company can legally do, and you can do it for the cost of nearly nothing.

Many of life's major changes can impact your credit, but keeping these savvy credit tips in mind can help you keep and build your credit, so it's always available when you need it.

Getting married brings many financial opportunities to couples that can combine their resources. As you plan your wedding day, plan for your future too and take these steps to keep your credit in tip-top shape. You can perform the following:

Notify creditors and credit bureaus if you change your name. When you change your name at marriage — or any other time — it's important that you make sure your creditors and the credit bureaus are notified of the change. Otherwise you might lose your credit history.

Keep credit in your name. Women especially must take care to keep some credit in their own name (e.g. "Jane Smith" rather than "Mrs. James Smith"). Every year women who have never paid a bill late are denied credit because they have no credit history in their own name.

If either you or your spouse-to-be has had trouble getting credit alone, try setting up a joint account to capitalize on your shared income and/or one person's stronger history. As your joint account history grows, you should each acquire and maintain an account of your own as well, to establish your credit on an individual basis. As you establish individual accounts, you might close some extra joint accounts, keeping only those you actually use.

The financial rewards of owning a home are extensive. When you own your home, the monthly payments become part of a savings plan. It does this when your home increases in value over time, you can use the equity for other major purchases or turn it into cash by selling it, and not have to worry about interest on the purchase.

When it comes to how much you can afford, that's for the lender to decide. The lender will consider how much you have available for a down payment and then calculate your debt payments, income, and credit history.

Buying a home, especially for the first time, makes significant demands on personal credit. It requires a solid credit rating and once it takes place, it can dramatically change some credit dynamics. On one hand, homeowners build equity — an asset that contributes to their net worth — with each mortgage payment. They also establish another level of credit history and stability by making their mortgage payment on time.

On the other hand, a mortgage is a large loan, and may have an impact on things like your debt-to-income ratio in the first years of the loan. Make sure when applying for a large loan you check your credit report, to assure yourself that it's free of any inaccuracies that might hinder your loan process.

Beginning a family is another life change that puts demands on your finances. As many soon-to-be parents find out, bills can quickly pile up as they prepare their homes and lifestyles to accommodate the newborn. Nevertheless, it's more important than ever to avoid overextending your credit when you start having children. That way you know your credit will be available when you need it — like 18 years from now when those tiny infants head off for college.

If you're faced with divorce or separation, you encounter many new challenges. One is determining how to separate your finances, including your debt and credit relationships.

Although even in good times many couples find it hard to talk about financial issues, it is essential that you communicate about credit during the divorce. Ask yourself these questions:

	Can we put our differences aside and talk about the financial issues of our separation?
	How can we make as clean a financial break as possible?
	Can we analyze our debts and determine between ourselves who will be responsible for what?

When couples are going through a divorce, they must remember that their joint accounts mean that both are still responsible in paying their debts to the creditor.

A divorce decree does not change the legal contract you and your former spouse made with creditors. You must arrange with creditors to change responsibility.

Keep paying bills to preserve good credit: even if it's your spouse's debt, it's still your credit rating.

If your spouse should die, a creditor cannot automatically close or change the terms of a joint account. In some instances, a creditor may ask you to update your application or re-apply. This can happen if the initial approval was based on all or part of your spouse's income or if the creditor has reason to suspect your income is inadequate to support the credit line.

Once you re-submit an application, the creditor can determine whether to continue to extend you credit or to change your credit limits. While your application is being reviewed, you are still allowed to use your accounts without any new restrictions. Within no more than 30 days of receiving the completed application, the creditor must give you a written response on your application.

The triple merged 3 Bureau Online Credit Report includes comprehensive information that can help you prepare for significant changes or major purchases. By double-checking that ALL bureaus' information is accurate you can make sure your credit will work for you in times of change.