You can get your credit score and credit report from a credit reporting agency. Credit scores are based on a variety of factors, and changing any of these factors in your favor can improve your score. It is very important to contact a credit reporting agency at least two times a year to obtain your credit report. The credit reporting agency keeps track of every little change or discrepancy in your credit.

By far the most widely used scoring system is FICO, from Fair Isaac Company. FICO scores have different names at each of the three credit reporting agencies. All of these scores, however, are developed using the same methods by Fair, Isaac, and who attempt, through rigorous testing to ensure they provide the most accurate picture of credit risk possible using credit report data from the credit reporting agency.

The Credit Reporting Agency

It should be clear to you by now why you should contact a credit reporting agency to monitor your credit report. All the information in your report contributes to your credit score. And your score determines how much you’ll pay for the money you need to borrow. The credit reporting agency has all of this information.

Even more importantly, criminals are turning to forms of identity and credit theft as our society uses less and less hard currency and depends more and more upon electronic exchanges. When the notorious bank robber Willie Sutton was asked why he kept robbing banks, he replied: “That’s where the money is!” But these days, that may not be such an accurate statement. Most people have far more money available to them in their credit lines than they have on deposit in a bank. Their assets are more likely to be in their home’s equity or their mutual fund than in hard currency. Money comes to them as a piece of paper (a check) or as an electronic deposit, and is likely to be spent the same way. Any criminal who wants in on any of this action has to be able to access your credit or bank account. Believe me, they can and do.

Checking your credit report from a credit reporting agency regularly is the best way to discourage thieves and will also help you maintain your credit score at the highest levels. The credit reporting agency can help you monitor your creditor. A credit reporting agency can even give you weekly updates on your credit. Here’s other things you should look for when talking to a credit reporting agency.

• Make sure there aren’t any accounts you didn’t open
  
  
• Make sure all your bills are going to the right address.
  
  
• Track your payment history - late payments can decrease your credit score.
  
  
• Make sure those payments you sent in are credited promptly. Payments you sent in “under the wire” may not have been credited properly.
  
  
• If there has been an identity theft, start getting it cleared up right away. The Supreme Court just ruled that you have only two years from the date of the credit inaccuracy to sue - whether you have discovered it or not.