Credit Score Facts: Trick or Treat !

TRICK or TREAT: During the recession everyone's credit score has dropped.

TRICK: While it’s true that many people have experienced lower FICO scores during the recession, millions of others have managed their credit in ways that have increased their scores. By doing a few basic things, many folks can increase their scores over time. The most important are - paying your bills on time, keeping balances low, and applying for new credit only when necessary.

TRICK or TREAT: Credit scores are only one factor that determines whether you get credit.

TREAT: While your FICO score is an important piece of information that most lenders consider, lenders will also consider other information before making their decision. This can include information from your credit application (income, length of time on your job, own vs. rent, etc.), any prior credit experience you have had with that lender, and the value of the property (auto or mortgage loan) you want to buy.

TRICK or TREAT: Congress made a law that every consumer can receive a free credit score annually.

TRICK: Every consumer is entitled to receive one free credit report per year from each of the national credit bureaus via www.annualcreditreport.com. This report does not include your credit score.

If you are taking out a loan and may be on the edge of a scoring range so that a few points difference could force you to pay a higher interest rate, it might be a good idea to ask your lender which score they would use so you review the proper one. Credit bureaus may sell the FICO score and their own proprietary version.

If you recently had a lender or car dealer pull your credit score for a purchase, you can also see if they will share the score with you. I recently inquired about my credit score from a lender because we're considering a FHA streamline refinance. My middle credit score is 799, meaning that of the three bureaus, one was higher and one was lower. The 799 score is a few points lower than when I checked last year, but it's not enough of a drop to spook me. The FICO range is between 300 and 850.