Which came first - credit reports or credit scores?
Credit reports contain all the information that goes into figuring out your credit score - information about your payment history and credit utilization ratio, along with the other items we discussed in Chapter 1.
Credit inquiries are one of the items found on your report and they make up 10 percent of your score. There are two types of credit inquiries: hard and soft. Hard inquiries may hurt your credit, while soft inquiries typically don't make an impact.
You could keep an eye on the information they have by checking AnnualCreditReport.com. Checking in will help you monitor, adjust, and plan to make the changes you need to rebuild your credit score.
Your Chapter 4 Checklist:
- Watch the Credit Reports, Credit Scores, and Credit Bureaus video
- Download the Credit Myths: Discredited Worksheet
- Go to AnnualCreditReport.com and check your credit reports
Financial Foundation for Freelancers
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