Whom Do I Ask Questions About My Credit Score?

The chorus of financial advice in the media can quickly turn into a cacophony. It comes at you from all directions, and without proper knowledge, separating the wheat from the chaff can be very difficult. Properly evaluating credit advice requires a sound understanding of the limitations of what credit consulting agencies can do for you and resources provided by state and federal government.

Limitations

The credit advice market has become large. It's easy to find companies and consulting agencies that claim to be able to repair your credit in a short period of time. If you have bad credit, these claims can seem enticing. If you're considering paying large amounts of money for these services, consider what the credit reporting agency Experian says: "There is nothing any credit repair clinic can legally do for you --- including removing inaccurate credit information --- which you can't do for yourself for free." It's prudent to treat audacious claims with skepticism.

FICO

When evaluating credit advice, it helps to know where your credit score comes from in the first place. That would be the Fair Isaac Corp., or FICO. Your FICO score is then calculated by three separate credit reporting agencies, TransUnion, Experian and Equifax. A credit education center on FICO's website covers what's included in your score, facts and fallacies about your credit score and how to repair your credit score.

Federal Government

Government agencies like the Federal Reserve and Federal Deposit Insurance Corp. have consumer guides on how to manage your credit. The Federal Reserve has a section on its website that gives advice on common credit questions and how your credit information can be used. It also provides a guide on other consumer protection laws. The FDIC has a consumer protection section on its website. It leads you to a site called MyMoney, which has a section devoted to managing credit and debt.

Outreach Programs

Many state governments provide outreach programs for its residents. For example, Ohio has regular free seminars on financial literacy that cover topics such as debt management and investing and target audiences such as women, minorities or seniors. In addition to outreach programs, most state treasury websites have sections devoted to financial education. State and local governments are also good places to verify credit repair agencies since most business licensing is done on the state level.