Credit report
A detailed record of credit accounts, balances, payment history, collections, and certain public information reported in your name.
Your homeownership toolkit
Credit doesn’t have to be confusing.
Learn what credit is, how scores work, and the practical steps you can take to build a stronger financial foundation for homeownership.
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What is credit?
Credit is the ability to borrow money or receive goods and services now with an agreement to repay later. Your credit history shows how you have managed those agreements over time.
Credit score
A number calculated from information in a credit report. Lenders use it to help estimate how likely you are to repay borrowed money.
Why it matters
Credit may affect mortgage approval, interest rates, rental applications, insurance pricing, and deposits for utilities or other services.
Credit report and credit score are not the same thing.
Your report contains the information; a scoring model analyzes that information. You can have several different scores because companies may use different models, credit bureaus, loan types, or calculation dates.
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How credit scores work
Many commonly used scores range from 300 to 850. A higher score generally signals lower lending risk, but each lender sets its own requirements and may use a different scoring model.
300–579Poor
580–669Fair
670–739Good
740–799Very good
800–850Excellent
These are general FICO-style ranges for education only. Mortgage lenders may use different score versions and qualification standards.
Payment history
Whether bills were paid on time is typically one of the most important factors.
Amounts owed
High balances compared with available credit can reduce a score.
Age and mix of credit
Account history, types of credit, recent applications, and serious negative events may also affect a score.
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How to obtain and build credit
You do not need to carry debt or pay interest to build credit. Start with one manageable account, use it carefully, and build a record of on-time payments.
Check whether you already have a credit file
Request your three reports before applying for anything. You may already have credit from a student loan, auto loan, credit card, or other reported account.
Choose a low-risk starting option
Consider a secured credit card, a credit-builder loan from a bank or credit union, or becoming an authorized user on a responsibly managed account. Confirm that payments are reported to the nationwide credit bureaus.
Pay every bill on time
Use automatic payments or reminders. If possible, pay a credit card statement balance in full each month to avoid interest.
Keep card balances low
A common guideline is to use no more than 30% of available revolving credit; lower use may be better. A $1,000 limit means keeping the reported balance below $300.
Apply only when needed
Multiple new applications and accounts may lower scores temporarily. Compare terms before authorizing a lender to check your credit.
Actions that can help
- Bring past-due accounts current and keep them current.
- Pay down revolving balances.
- Keep older, no-fee accounts open when appropriate.
- Review reports and dispute inaccurate information.
- Contact creditors early if you may miss a payment.
Watch out for
- “Guaranteed” score increases or a new credit identity.
- Upfront fees for results that cannot be promised.
- Closing several cards at once without understanding the effect.
- Disputing accurate information simply because it is negative.
- Sharing Social Security numbers on unfamiliar websites.
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How to check your credit reports
Checking your own report does not hurt your score. Review reports from Equifax, Experian, and TransUnion because the information may differ.
Use the authorized website
Visit AnnualCreditReport.com or call 877-322-8228. Free weekly online reports are available from each nationwide credit bureau.
Protect your information
Type the website address directly, use a private internet connection, and do not provide personal information in response to an unsolicited call, email, or text.
Review every section
Check your name and addresses, accounts, balances, late payments, collections, and inquiries. Look for unfamiliar accounts or information that belongs to someone else.
Dispute errors
Contact both the credit bureau and the company that provided the information. Explain the error, include supporting documents, and keep copies of everything you submit.
Your free reports may not include a free credit score.
Your bank, credit card company, lender, or nonprofit housing counselor may provide a score. Read the terms carefully before signing up for a paid score or monitoring service.
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Trusted credit resources
Use these official or nonprofit resources for reports, disputes, fraud protection, and one-on-one guidance.
Free credit reports
AnnualCreditReport.comThe federally authorized source for free reports from all three nationwide credit bureaus.
Credit education and disputes
Consumer Financial Protection BureauLearn about reports, scores, errors, and consumer rights.
Identity theft and recovery
IdentityTheft.govReport identity theft and create a personal recovery plan.
Credit freezes and fraud alerts
Federal Trade CommissionCompare free freezes and fraud alerts and learn how to place them.
4101 N. Classen Blvd., Suite A, Oklahoma City, OK 73118
405-231-4663 · info@nhsokla.org
Educational information only; it is not legal, financial, or credit-repair advice. Credit scoring and loan requirements vary. NHSOKLA is an Equal Housing Opportunity organization.