Understanding Credit

Building or rebuilding your credit takes smart money management and time. Fortunately, there are things you can do that may improve your credit. Here's what you need to know to get started.

 

Credit scores change over time, which means you have a chance to improve yours if you're having credit issues. It doesn't happen instantly, but you can make a difference by building good credit habits. Explore tips that can help you improve your credit score.

 

Ten percent of your credit score is determined by your "credit mix," or having different types of debt, which may include some installment credit (loans or mortgages) and some revolving credit (credit cards or lines of credit). It's not a good idea to take on new debt just to add new types. But if you decide that borrowing is right for you, discover how to choose the right credit option.

 

When you're building or rebuilding your credit, an error on your credit report can be a setback. The three major credit reporting agencies maintain credit files on 220 million Americans, and with that volume, some mistakes do occur. It's a good idea to check your own credit report regularly for errors. Visit AnnualCreditReport.com to get a free copy of your report once each year. If you find a mistake, there are dispute forms that you can fill out with each of the agencies. Learn more about how to protect your credit.

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