What is a Credit Score?
Credit Score also known as the FICO® Score is a 3 digit statistical number starting with as low as 300 (very Poor) going upto a max of 900 ( very Good) that helps potential lenders to determine your credit risk. In other words, they will determine your ability and likelihood to repay debt. A Credit Score is a statistical model that was devised in the 1980s by Fair, Isaac and Company (FICO) inorder to predict the credit risk of consumers based on the data collected from an individuals credit report. Today, this system is widely used by lenders.
For a score to be calculated, your credit report must contain at least one account that has been open for six months or more, and at least one account that has been updated in the past six months. Fluctuations of a few points from month-to-month are common. 
Name & Variations of name ?
The way your name is spelt every time you apply for a Credit Card or Loan or even when you Opening an account etc. matters a lot. Variations in your name will lead to a lot of questions whenever a lender reads your report.
Current & Previous Address ?
From the time you apply for a credi card or a loan or even your driver licence your current address is always checked, if you have moved to a new palce then your previous address is asked for . Lenders like to know where you have been living for atleast 2-3 years.
Social Security Number , Date Of Birth & Employment Data ?
This information is very crutial every time you apply for any loan , if there is any variation in the information provided then that goes on your credit report and will affect you thenext time you apply for any loan . Your Date OF Birth and Employment information should be accurate if that varies it leand to questions and a possibility of a decline from the lender.
Public Records ?
A lender who pulls up your credit report will be able to see if you have judgements, liens or family responsibilites etc. pending.
Inquiries ?
This shows the name and phone number of all the companies and people who have pulled out your credit report , the advantage of this for you as a customer is that you can look at the list and will be able to tell if you authorized that company to pull out your credit
The advantage for the lender is that he can see what kind of companies have pulled out your credit giving the lender an idea as to how many times your have to tried to apply for a loan.
Credit Accounts & History ?
Every time you get a credit card or a loan from a lending institute that information is sent to equifax and trans Credit within 1-2 months of you being approved , this is then put on your credit bureau and is called your credit account , everytime you make a paymen or miss a payment it is all recorded and that is refered to as your credit history
Lending institutes update their information on all their customers periodically and that helps other lenders to judge your financial situation. It helps them know how your are as a customer , if you make your payments on time , how much loan you have and what kind of credit you ahve with other institutions . This Credit account & History is also referd to as Trade Lines and each one of them have an individual rating , many lenders prefer looking at that rating more that looking at your FICO or Beacon Score.
What is used to calculate the score ?
Number of Credit Obligations :
Too many Credit Obligations is bad but on the other hand too little is not good either. Consumer today have credit obligations like credit cards (such as department store charge cards, gas cards, or bank cards) and installment loans (auto loans, mortgage loans, student loans, etc.). All this shows up on your credit Report effecting your SCORE
Past Payment Performance :
This is very crutial from a lenders point of view , its gives them the idea on how you are as a customer. Do you make your payments on time? or do you delay if so then is it regular or has it happned only once or twice. If you miss any payment that reflects on you credit report giveing the lender an idea of how you handle your finances
Credit Utilization :
How you utilize your credit is also extreamly crutial , you may have a limit on your revolving credit card of $ 2000 , but if you have gone over that limit it shows the lenders that you are depending on your credit way too much and that is not good . On an average you should try not to exceed more that 50% of your limit this shows the elnders that you do not depend entierly on your credti and also refelcts on you the Credit Report to your advantage
Total Available Credit :
You can have 7 different credit cards available on your Bureau adding upto $ 35,000.00 but you are using only 2 on regular basis then that is no too good , lenders will look at the credit that is available to you even though you are not using it the amount is available to you and you can take that out anytime you need . That is why if you do not use that credti card do not hold on to it because it justs adds on to your available credit which is not good
Length of Credit History :
Lenders look at the length of you Credit History, it indicates how long you have been managing your credit , the longer the length of your Credit History the better
Inquiries :
When someone applies for a loan or a new credit card account that shows up on the credit bureau as an inquiry and that affects the Beacon Score - in short, any time one applies for credit and a lender requests a copy of the credit report - this request is noted as an “inquiry” in the applicant's credit file.
Ways to Improve Your Score
Make all of your payments on time if for any reason you are no able to make a payment, be sure to pay the following month. Accounts more than 60 days past due will be indicated on your credit report.
Minimize the number of inquiries on your credit report, don't apply for multiple credit cards over a short period of time because it will all show up as inquiries and that will effect your beacon score
If you fall behind on paying a bill because of illness, unemployment, or family issues, write a short explanation to the credit reporting agencies or call your creditor to explain the circumstances and, if possible, work out a payment schedule you can meet.
Correct any incorrect information that might appear on your credit report. Like your name , DOB , Employment Info Address etc.
If you have a very short credit history, apply for either a department store card, or a secured credit card use the cards and make sure to pay the balances on time.
Try to keep your total account balance below 75% of your total available credit. For instance, if your cards have a total credit limit of $2,000, keep your total balance under $1,500.
Close accounts you don't need. A total of three or four cards -- including gasoline or department store cards -- is usually good.
On your Birthday Pull Out Your own Credit report and review , if you find anything loan that's on the report and you have not appied for it , you must call equifax right away and also the lender to get the info on thar card
Do Not hand your Social Insurance card or a copy of that card to anyone because it can be tampered with and will lead to an Identity Theft and possible fraud.
Identity, Theft & Fraud
An identity theft occurs when someone steals your personal information to take over your credit accounts, open new ones, take out a loan, rent an apartment, access bank accounts, or commit many other crimes at your expense.
When it strikes, the effects can be devastating. What's more, because it frequently involves no physical theft, identity theft may not be noticed by its victims until significant damage has been done -- often, several months and thousands of dollars later.
Credit card fraud is just one type of identity theft. While a thief may use your information to apply for a new credit card, some types of identity theft don't involve credit cards at all. Someone with a bad credit rating may use your personal information to get a car loan, acquire phone, cellular service, or another utility service, or open a bank account in your name.
Such cases can be seriously damaging, since you may not realize anything is wrong until you notice unfamiliar charges on your monthly bills or statements.
How Do I Prevent Identity Theft ?
Preventing Identity Theft is only a matter of being carefull on where and when you give your personal information like your date of birth, your social Insurance,
If you loose your information do not waste any time call all your credit card companies and inform them about it so it will protect you incase anyone tries to misuse it.
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