It is more likely that all three of your reports and scores are different. Each of the credit bureaus has different information about your credit. For instance, one bureau’s records may go back further, or one of your creditor’s may only report to one bureau and not the other two. You will probably also have a different number of inquiries on each report.

The three major credit bureaus, Experian, TransUnion and Equifax, do not share information and you are responsible for contacting all three bureaus.

It is best to pay a debt as soon as possible because you are actually penalized for how long it took you to pay off the debt. Unfortunately, paying off a charge-off or collection will not remove it from your report. In fact, it will likely stay on your report for seven years after your payment.

The amount of debt you have greatly affects your overall credit score. Credit limits that are maxed out are considered a negative mark. Try to keep balances at or below 30% of your available credit.

When you cosign for a loan you are taking responsibility for that loan and the payments that are required for that loan. It is as if you took the loan out yourself, so it does affect your credit.

No. When you file for bankruptcy, while your debt may be relieved, every single account included in the bankruptcy will appear on your report as a charged off (included in bankruptcy) item. You may even be required to still pay off some of your debt depending on your situation. It is a very serious decision with very serious consequences that can remain a part of your credit for 10 years.

Those old accounts show nice long payment histories and add positively to your credit. Your score is based on both positive and negative credit. Keep those old accounts open and use them every six months or so just to keep them active.

While a credit score is an important factor, lenders also look at factors such as your debt, income and employment history.

Canceling cards can drop your score by as much as 150 points. You need to have a number of good HEALTHY accounts; it gives you a record of available credit and a longer credit history. According to FICO (Fair Isaac Corp), the average consumer has 13 credit obligations. Keep in mind, however, that too many applications for credit as well as inquiries can hurt your credit score.

Inquiries are a very minimal part of your score calculation. Also, multiple inquiries from mortgage or auto lenders within a short period of time are typically treated as a single inquiry.

These institutions are not actually granting you credit, they will only report to the credit bureaus if you fail to pay. When it comes to phones, utilities and cable, you can only hurt your credit . . . not build it.

Many people believe this to be true, but everyone has their own individual credit. Only accounts that have your name on them affect your credit. If you open a joint account or add yourself to an existing account, then those accounts appear on both your spouse’s and your credit report.

A divorce decree does not carry any legal weight with your creditors. It will not override any agreement you have signed. If your name is on the account, then you owe the money. So, if you and your spouse sign on a car loan and the judge orders one of you to pay it, if it is not paid by that person, then both of your credit scores are damaged.

The credit reporting agencies recognize different types of inquiries. Checking your own credit report is counted only as a “soft inquiry†and doesn’t harm your credit at all. Only “hard inquiriesâ€, the one’s made from a creditor or lender when you apply for credit, can bring down your score a few points.

Negative items on your credit report will still bring your credit score down. The only way to improve your score is to get those negative items removed.

More money does not equal better credit. Only paying off your debt will improve your credit. Income and net worth are not factors of your credit score.

While it is true that paying the minimum due will keep the credit card companies from harassing you, it will extend your payments for many years. If possible, try to send more than the minimum due. Think about this: Paying off $5,000 over eight years at a 19% interest rate will cost you $4,311 in interest alone. You will end up pay almost twice the amount of your initial debt.

For many people, consumer credit counseling is a worthwhile endeavor. Consumer credit counseling companies can assist consumers who are having trouble making payments and are overwhelmed with debt. This can be a wise alternative to filing bankruptcy, and paying off your debt is definitely a step in the right direction, but it does not repair your credit. However, consumer credit counseling companies are funded and controlled by the credit grantors and the credit bureaus, and do not help you improve your credit history. In fact, while you are participating in this process, the creditors involved often list on your credit report that you are involved in a counseling program, which is considered a negative account on your report.

By law, negative information can only stay on your credit file for seven years (bankruptcies for 10 years). Also, the past 24 months are the most important – older negative information will hurt your score less than more recent information. If you continue to make payments on time and pay down your debt, your credit score will steadily improve with time. A low score now definitely doesn’t mean you’ll have a low score forever.

Everyone should check his or her credit at least once a year. Studies show that 80% of all credit reports have some type of error. These errors can range from the wrong birth date to accounts that do not belong to you. It is very important to know what is and is not included in your credit. Finding out at the car dealership, when you are trying to buy a new car, is not when you want to discover an error.