The Wall Street Journal says "it might be the most important number you don't understand". Everyone from insurance companies to employers now use credit scores (formerly used mostly by mortgage lenders) "in an effort to harness the predictive power of the data behind your credit score".

Some studies have also shown strong correlations between low credit scores and other costly behaviors, such as car wrecks and fraud. Doing something as benign as signing up for a retailer's credit card to get an extra discount have far reaching effects on your personal credit score.

Credit scores range from 300 to 850. Usually a score below 700 indicates it can be harder to get the best loan. Credit Scores also known as FICO scores are comprised of five components, including:
30% Amounts Owed
35% Bill Payment History
10% New Accounts
10% Diversity of Accounts
15% Length of Credit History.

As the use of credit scores increases, financial-services companies are introducing new ways to try to help consumers track their personal score. Companies like Equifax have stared using Score Watch, a service that sends
emails or messages to customers whenever their score fluctuates out of a set range.

An amendment to the fair credit reporting act requires each of the nationwide credit reporting agencies, Equifax, Experian and TransUnion to provide you with a free copy of your credit report every 12 months.

To order your free credit report, visit annualcreditreport.com, or call 1-877-322-8228, or mail your Annual Credit Report Request Form to:
Annual Credit Report Request Service
P.O.Box 105281
Atlanta, GA. 30348-5281
This form is available at annualcreditreport.com.