Check your credit score

If you have a credit card, if you pay bills, or if you have ever taken a loan, you have a credit score. There are several companies that gather this information, which they use to calculate a score that evaluates whether you are likely to repay your debts. If you have a lower score, you are considered a bigger risk for loans, which means you will have to pay higher rates on car loans, mortgages and credit cards. Scores generally range from 280 - 990. If your score falls below 700, work on improving it. See the Resources section for details on the main providers of information in this area.

• Check your credit score at least once a year. You can order your score from any of the legitimate services, for a modest fee. The main providers are Equifax, Experian, TransUnion, or FICO (Fair Isaac Corporation).
• Check your credit report at least once a year. Credit reports may contain errors that negatively affect you. If you see anything inaccurate in your credit report, write to the company to request a correction. Federal law guarantees all Americans a free credit report once a year. Also, you can request a free credit report if you have been denied a job, insurance, or credit; if you are an identity theft victim; or if a free credit report is required under your state's law. See the Resources section for information about obtaining free reports from legitimate providers.
• Beware of scams. Look out for companies offering "free credit reports" that are not really free services or that could be scams. Don't give personal information to unfamiliar companies that contact you. Don't enter into purchase agreements with companies offering to finance expensive products, where the cost can depend on your credit score.

Watch out for credit repair scams

  Beware of services claiming they can fix your credit in a short period of time or magically remove negative items from your credit report. There are no quick fixes for bad credit.