Your credit score, also known as a FICO score or credit rating, is the number that lenders use to determine your credit risk based on the information in your credit report. The number of accounts you have, your payment history and your degree of debt all influence your credit score. Each of the three credit bureaus may have a different score for you, since each may have different information. Arkansas consumers are subject to the same laws and protections offered to the rest of the country by the Federal Trade Commission (FTC).
Obtaining Your Credit Report and Score
In Arkansas, you are entitled to one free copy of your credit report each year. You can obtain this report by going to www.annualcreditreport.com and filling in the information requested. You can then download and print your report and check it for errors. Federal law also allows you to request a copy of your credit report any time that you are turned down for credit, such as a loan or credit card. These reports do not supply your credit score. In most cases, you will need to purchase a copy of your credit score from a reporting agency or directly from FICO at www.myfico.com. These generally cost around $8 per report.
Free Credit Reports and Scores
The Credit Card Act of 2009 requires that any services advertising "free" credit reports and scores disclose that these reports are not the same as those offered annually by the credit bureaus. In most cases, these "free" reports require enrollment in a monthly credit-monitoring service or the purchase of a credit score report.
How to Improve Your Credit Score
The best way to improve your credit score and ensure your access to the credit you need is to pay your bills on time, every time. Maintain low balances on the credit cards you do have. If you detect errors on your credit report, federal law allows you to contest the information on your report and have those errors corrected. If you are having trouble paying your bills, consider enlisting the help of a reputable debt management company to create a workable repayment plan. See the Resources section for a list of Arkansas credit counseling agencies approved by the Department of Justice.
Avoid companies that offer to repair or rebuild your credit for a fee, especially those companies that do not help you repay your debts. According to the Federal Trade Commission, only time and a concerted effort to repay your debt can improve your credit score.
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