New credit score system
By the end of 2006, Equifax, Experian and TransUnion will begin using a new standardized credit score system instead of their own individual systems, that should help consumers eliminate confusion about credit scores.
The old FICO score system you’ve probably seen on freecreditreport.com TV commercials operates on a scale of 300 to 850. The new credit score system rates from 501 to 990, with a letter grade similar to school grades.
901-990 = A
801-900 = B
701-800 = C
601-700 = D
501-600 = F
A credit score is based on financial responsibility. Best advice on maintaining good credit score is to always pay your bills on time, including insurance, phone, as well as credit cards. On credit cards, keep your balances within reason so that you can always afford pay off your balances in full every month, and you won’t risk exceeding your limit. Except in emergencies, it’s a bad idea to charge more than you can afford to pay off in full. Transferring debt from one credit card account to another account, known as “robbing Peter to pay Paul.” This is a common warning sign of debt that’s out of control. Avoid frequently opening and closing credit card accounts. Don’t overextend yourself.
