Understanding FICO Scores
A FICO Score is one type of credit score calculated from information in a credit report. Common factors include payment history, amounts owed, length of credit history, new credit, and credit mix. Their impact varies by scoring model and by the information in a person's file. Many widely used base FICO Scores range from 300 to 850, but industry-specific and other scoring models can use different ranges.
Lenders may use different versions or other evaluation criteria, so a score you see may not match the score used for a lending decision. Review reports for accuracy, pay bills on time when possible, and avoid taking on credit solely to pursue a particular score. No action guarantees a specific score or loan approval.
Learn about FICO Score factors at myFICO
CROA: Protections for Credit Repair Customers
The federal Credit Repair Organizations Act (CROA) regulates credit repair organizations. Among other protections, it bars deceptive practices, requires written disclosures and a written contract with specified information, and gives consumers a right to cancel certain contracts without penalty within three business days. CROA also generally prohibits a credit repair organization from charging or receiving payment before the promised services are fully performed.
Be wary of promises to remove accurate, current information or to create a new credit identity. You can dispute information you believe is inaccurate directly with the credit reporting company and the company that supplied it. Read the contract, keep copies, and verify your rights and any exceptions with official resources or a qualified attorney.
Read the CROA at the Federal Trade Commission
What the FDIC Does—and What Deposit Insurance Covers
The Federal Deposit Insurance Corporation (FDIC) insures eligible deposits at FDIC-insured banks, supervises certain financial institutions, and manages the resolution of failed insured banks. Standard deposit insurance is generally up to $250,000 per depositor, per insured bank, for each account ownership category. Coverage depends on ownership and account details; use the FDIC's tools to check your situation.
FDIC insurance is automatic for eligible deposits at an insured bank and does not cover stocks, bonds, mutual funds, crypto assets, or losses from investment value changes. A financial technology company or payment app is not itself an FDIC-insured bank; check where funds are held and what conditions apply before relying on pass-through coverage.
Review deposit insurance information at FDIC.gov
Build a Monthly Budget You Can Maintain
Start with take-home income and list essential bills, debt payments, variable spending, savings, and irregular costs such as car repairs or annual premiums. Use recent statements to estimate realistic amounts instead of relying on guesses. Give each dollar a purpose while leaving room for needs that change from month to month.
Track spending during the month and compare it with your plan. If expenses exceed income, identify changes you can sustain, contact creditors before missing payments when possible, and avoid filling the gap with high-cost borrowing without understanding the terms. A budget is a planning tool, not a guarantee against unexpected hardship.
Explore budgeting tools at the Consumer Financial Protection Bureau
Manage Debt and Reduce Avoidable Interest Costs
Before borrowing, compare the annual percentage rate (APR), fees, repayment term, monthly payment, and total amount you may repay. Paying only a credit card's minimum can keep an outstanding balance for longer and increase interest costs. Check your account terms, because rates, fees, and payment rules vary.
List balances, minimum payments, and APRs to see the full picture. Some people prioritize the highest-rate balance to reduce interest; others prefer paying a smaller balance first for motivation. Keep making at least required payments when possible and choose a plan that fits your cash flow. If payments are becoming unmanageable, contact creditors early and consider a reputable nonprofit credit counselor; be cautious of anyone guaranteeing debt elimination or asking for upfront fees to settle debts.
Learn about credit cards and repayment at the CFPB
Check and Correct Your Credit Reports
Credit reports contain account and payment information that may be used to calculate scores. Review reports for unfamiliar accounts, incorrect balances or payment history, and possible identity theft. Request reports through the federally authorized AnnualCreditReport.com website; avoid look-alike sites that charge for a report or request unnecessary information.
If you find an error, you can dispute it with the credit reporting company and the business that provided the information. Include relevant documents, keep copies, and follow up on the investigation results. Checking your own report does not hurt your credit score. Keep monitoring accounts and use official channels if you suspect fraud.
Request reports at AnnualCreditReport.com |
CFPB credit report and score resources
This material is for general educational purposes, not legal, tax, investment, or individualized financial advice. Laws, account terms, and financial circumstances vary; confirm current details with the relevant agency or a qualified professional.
