How to Explain Credit Report Scores
- 1). Enroll in a financial literacy class to better understand credit, including credit scores and your credit report. Find classes at a nonprofit credit counseling agency, or through a charitable organization. Contact local charities such as Catholic Charities USA, the United Way or the Urban League. Or find a nonprofit credit counseling agency by seeking a referral from your bank or credit union.
- 2). Get a copy of your credit report and score. Order the report from Annual Credit Report, which makes credit reports available for free under the terms of the Fair Credit Reporting Act. Follow instructions on the credit report for ordering your credit score separately for a fee.
- 3). Compare your score to the published range for credit scores and to determine if your credit is poor, good or excellent. Review information on your credit report to understand how it could be impacting your score. A low score could indicate that multiple late payments are noted on your credit score along with negative entries such as charge-offs, judgments or liens. A good credit score could indicate that your credit report has few -- if any -- negative entries. Use the training from your financial literacy class to continue understanding your credit score as you review the report.
