Q If each credit bureau gives me a different score, which do

lenders use?

A Lenders typically take the middle of the three scores, or the lower of two if a third

score is unavailable.

Q Should I order my credit report and give it to lenders when

I apply for a loan?

A No. You can order your credit report so that you know generally what your score is,

but your lender will obtain your score directly when evaluating your application. This

is especially true if the lender wants an industry-specific score, since those are not

available to you.

Q What factors affect my score the most?

A In order of importance:

35% Your payment history                                                                       

30% The amount you owe on open accounts

15% Length of your credit history

10% New credit you’ve been granted

10% Types of credit you use

Q Will I be penalized for shopping around for the best interest rate?

A Frequent inquires can decrease your score since it indicates that you’re looking for

credit. However, you can reduce the likelihood of having your score decreased if you

do all of your shopping over a short period of time, such as 14 days.

Q How can I maintain a high credit score?

A Anything from being late on a payment to having too much credit—even if you always

pay on time—can hurt your credit scores. Keep these five pointers in mind to help

make you more desirable to lenders:

1 Pay your bills on time.

2 Don’t apply for excessive amounts of credit.

3 Don’t use all of your available credit. Lenders like to see a low “balance-tocredit-

limit” ratio, meaning you have more credit than you actually use.

4 Don’t close old credit card accounts, because that can shorten your credit

history and raise your “balance-to-credit-limit” ratio.

5 Check your credit report annually for mistakes, and correct errors as soon

as you notice them.