Get Your Credit Scores -- and Then Sit Down to Talk

You need to get your credit reports from the three credit bureaus -- Equifax, TransUnion and Experian. Why all three? You need all three reports because each may contain different information. Each credit bureau keeps a file on you with information supplied by your creditors. Some creditors don't report consumer credit information to all three bureaus, so it's possible that what's on one report may not be on another.

The good news is that under the Fair and Accurate Credit Transactions Act of 2003, you are entitled to a free credit report from each credit bureau. Under the law, you can obtain a free copy of your credit report once every 12 months upon request . There are several ways to get your free credit reports:

· Online at https://www.annualcreditreport.com/

· By phone. Call 877-322-8228. You will go through a verification process over the phone. Your reports will be mailed to you.

· By mail. You can request your credit report by mail by filling out a request form (which you can find online) and mailing it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Ga. 30348-5281.

When ordering your credit reports, also request your credit scores (which are not free). You need all three scores because, just as with your credit report, each bureau generates a different score. You can go to the Web site of each bureau to pay for your score.

The gold standard for credit scores is called a FICO score, named for the Fair Isaac Corp., which devised a mathematical model to predict the credit risk of consumers based on information in their credit report. FICO is the credit-scoring model most widely used by lenders.

FICO scores range from 300 to 850. A score above 700 indicates that you are a relatively low credit risk and will likely qualify for the best interest rates. Consumers with scores below 600 are typically charged higher loan rates. Not only can a low credit score cost you thousands of dollars a year in additional finance charges, but you might also be denied insurance, telephone service, an apartment, or even a job.

All three major credit bureaus use different scoring models, including FICO. When you order your credit score from these three bureaus, here's what you're getting:

· Equifax's credit score is called "Score Power." Even though this uses the FICO scoring mode, you may get a different score than one pulled by a lender because the information in your credit file is constantly changing. The score you get this week may not be the same score a lender would get from the credit-reporting company the next.

· Experian calls its credit-score product "PLUS Score." It is based on factors similar to but not the same as those that go into FICO. The PLUS Score ranges from 330 to 830.

· TransUnion's credit-score product is also not a FICO score but is based on the bureau's own proprietary scoring model.

So in addition to scratching your head, you may still be wondering which score to buy. Well, it depends. You may have to buy all three to get a complete picture of your creditworthiness. If you are about to be married, you should pull all six scores (three for you, three for your intended). The idea is to eliminate any nasty credit surprises.

-- Michelle Singletary