Credit FAQ

A credit score is a three-digit number — typically ranging from 300 to 850 — that summarizes the information in your credit report into a single measure of credit risk. Lenders, landlords, insurers, and other creditors use it to quickly assess how likely you are to repay a debt on time.

The higher your score, the lower the perceived risk. Scores are generated by scoring models (such as VantageScore or FICO) that apply a mathematical formula to the data in your credit file at a given bureau. Because each bureau holds slightly different data, your score can vary across Equifax, Experian, and TransUnion.

Scores provided by Score Guardians are for educational purposes and may differ from scores lenders use for credit decisions.

Scoring models weigh several categories of information from your credit report. While the exact formula varies by model, the factors below are the most influential — listed roughly in order of typical weight:

• Payment history — Whether you pay on time is the single biggest factor. Late or missed payments hurt your score significantly.
• Amounts owed / utilization — How much of your available revolving credit (credit cards, lines of credit) you are using. Lower utilization is better.
• Length of credit history — How long your accounts have been open and how recently you have used them.
• Credit mix — Having a healthy mix of account types (revolving credit, installment loans, mortgage) can help your score.
• New credit / inquiries — Applying for credit generates a hard inquiry, which can temporarily lower your score. Multiple applications in a short window are treated as one event for most scoring models when rate-shopping for a mortgage or auto loan.

Most scoring models use a 300–850 scale. Here is a general guide — note that lenders set their own thresholds, so "good" may differ depending on the type of credit you are applying for:

• 800–850 Exceptional — Qualifies for the best rates and terms.
• 740–799 Very Good — Well above average; strong approval odds and competitive rates.
• 670–739 Good — Near or above the average for U.S. consumers; most lenders will approve.
• 580–669 Fair — Below average; approval is possible but rates are higher.
• 300–579 Poor — Significant negative history; approval difficult without a secured product or co-signer.

Each of the three national credit bureaus — Equifax, Experian, and TransUnion — collects data independently. Not every creditor reports to all three bureaus, and the timing of updates can differ. As a result, the underlying data in your file at each bureau may not be identical, which leads to different scores even when the same scoring model is applied.

Lenders often pull one or two bureau scores (or all three for mortgages), so it is useful to know your score at each bureau. That is why Score Guardians provides all three.

VantageScore and FICO are two separate companies that each produce credit scoring models. Both use the 300–850 scale and evaluate similar factors, but their formulas and weighting differ.

• FICO scores are used in the majority of mortgage and auto lending decisions and have been in use since the late 1980s.
• VantageScore was created jointly by the three bureaus and is widely used in consumer-facing tools, including many credit monitoring services.

Your Score Guardians dashboard shows educational scores. Because lenders may use a different model or version, treat your dashboard scores as a reliable indicator of your credit standing — not as the exact number a specific lender will see.

Creditors, insurers, landlords, and some employers use credit scores to evaluate risk quickly. When you apply for a credit card, auto loan, mortgage, or apartment, the decision-maker pulls a score (and often your full credit report) to help determine whether to approve you and at what interest rate or terms.

Industry-specific score variants also exist — a mortgage lender may use a model that weights mortgage payment history more heavily, while an auto lender may focus on auto loan history. This is another reason your Score Guardians educational score may differ from the score used in a specific credit decision.

A credit report is a detailed record of your credit history maintained by one of the three national credit bureaus. It is the underlying data source from which your credit score is calculated.

Lenders, landlords, insurance companies, and some employers request credit reports to evaluate your financial responsibility when you apply for credit, housing, or certain jobs.

A standard credit report contains four main sections:

• Personal information — Your name, current and previous addresses, date of birth, Social Security number (partially masked), and employer history. This section does not affect your score.
• Account history — All open and closed credit accounts: credit cards, installment loans, mortgages, student loans, and retail accounts. For each account you will see the lender name, account type, date opened, credit limit or loan amount, balance, and payment history (including any late payments).
• Inquiries — A record of who has requested your credit report and when. Hard inquiries (from credit applications) are visible to lenders; soft inquiries (from monitoring services, pre-screened offers, and your own pulls) are visible only to you.
• Public records and collections — Bankruptcies and accounts sent to collections that appear on your report.

Under the Fair Credit Reporting Act (FCRA), you are entitled to one free credit report per year from each of the three bureaus. The only website federally authorized to provide these free reports is AnnualCreditReport.com.

Score Guardians is not affiliated with AnnualCreditReport.com. Your Score Guardians membership provides separate, ongoing access to your three-bureau reports and scores as part of your $19.99/month subscription — these are in addition to, not a replacement for, the free annual report you are entitled to by law.

Creditors typically report updated account information to the bureaus once per month, but the exact date varies by creditor. One lender may send updates on the 1st of the month; another on the 15th. That means your credit file is in a constant state of gradual update throughout any given month.

Your Score Guardians profile is refreshed monthly to capture the latest changes. Because creditor reporting cycles do not all align, having continuous monitoring — rather than a single annual snapshot — helps you catch changes as they happen.

The FCRA sets maximum reporting periods for most types of negative information:

• Late payments — Up to 7 years from the date of the missed payment.
• Collections accounts — Up to 7 years from the date the original account first became delinquent.
• Chapter 7 bankruptcy — Up to 10 years from the filing date.
• Chapter 13 bankruptcy — Up to 7 years from the filing date.
• Hard inquiries — Up to 2 years, though their scoring impact typically fades after 12 months.

After these periods the information must be removed. Positive account history can remain on your report indefinitely even after an account is closed, which is one reason a long credit history benefits your score.

Credit monitoring is a service that continuously watches your credit report for changes and notifies you when activity is detected. Changes can include new accounts, new inquiries, balance changes, late payment notations, address changes, or accounts sent to collections.

Monitoring serves two key purposes: it keeps you informed of expected activity (like a new account you opened), and it gives you an early warning if something unexpected appears — a common early sign of identity theft.

Score Guardians monitors all three bureaus and sends an alert when we detect any of the following:

• A new credit account opened in your name
• A new hard inquiry on any of your three reports
• A significant change in an account balance
• A new or updated derogatory notation (late payment, collection, etc.)
• A change of address associated with your credit file
• A new public record such as a bankruptcy

If an alert describes activity you did not initiate, review it promptly and take action if needed. See the "Your Rights & Disputes" section below for guidance.

A credit inquiry is a record that someone accessed your credit report. There are two types:

• Hard inquiry — Generated when you apply for credit (credit card, auto loan, mortgage, apartment rental, etc.). Hard inquiries are visible to lenders and can temporarily lower your score by a few points. They remain on your report for up to two years.
• Soft inquiry — Generated when you check your own credit, when a lender pre-screens you for an offer, or when a monitoring service pulls your report. Soft inquiries are visible only to you and do not affect your score.

Checking your own credit through Score Guardians is always a soft inquiry — it will never hurt your score.

Identity thieves often open new credit accounts using stolen personal information. Without monitoring, months can pass before you discover fraudulent accounts — by which time significant damage may be done to your credit file and finances.

Continuous monitoring means you are notified shortly after an unexpected account or inquiry appears, allowing you to respond quickly. The sooner you act, the easier it typically is to resolve fraud and correct your credit report.

The Fair Credit Reporting Act (FCRA) is a federal law that governs how credit bureaus collect, store, and share your information. Key rights it provides include:

• The right to a free annual credit report from each bureau via AnnualCreditReport.com.
• The right to know if information in your file has been used against you in a credit, employment, or insurance decision.
• The right to dispute inaccurate or incomplete information.
• The right to have outdated negative information removed after the applicable reporting period.
• The right to limit access to your file — creditors may only access your report when you apply for credit or authorize access.
• The right to seek damages if a credit bureau or creditor violates the FCRA.

If you spot inaccurate information on your credit report, you can dispute it directly with the bureau that is reporting the error. Each bureau has an online dispute process:

• Equifax: equifax.com
• Experian: experian.com
• TransUnion: transunion.com

Under the FCRA, the bureau must investigate your dispute — typically within 30 days — and either correct, delete, or verify the information. You can also dispute directly with the creditor that furnished the information. Keep copies of any supporting documentation you submit.

Score Guardians is a credit monitoring service and does not dispute items on your behalf. If you need hands-on help with your credit file, consult a nonprofit credit counselor or a licensed attorney.

Act quickly. Here are the recommended steps:

• Place a fraud alert — Contact any one of the three bureaus to place a free initial fraud alert (valid one year). That bureau must notify the other two. Lenders are then required to take extra steps to verify identity before opening new accounts in your name.
• Consider a credit freeze — A security freeze (also free) blocks new lenders from accessing your report entirely until you lift it, making it harder for thieves to open new accounts. Contact each bureau separately to freeze your file.
• Report to the FTC — File an identity theft report at IdentityTheft.gov. This creates an official record and generates a personalized recovery plan.
• File a police report — A local police report can support your dispute with creditors and bureaus.
• Dispute fraudulent accounts — Work directly with the bureaus and affected creditors to remove fraudulent tradelines from your report.

Both tools limit access to your credit file, but they work differently:

• Fraud alert — Asks lenders to take extra verification steps before opening new credit. It does not block access to your report. A free initial alert lasts one year; extended alerts (for confirmed identity theft victims) last seven years.
• Credit freeze (security freeze) — Locks your report so that most new creditors cannot pull it at all, effectively preventing new account openings. You can temporarily lift or permanently remove a freeze at any time for free. A freeze at one bureau does not apply to the other two — you must place it at all three separately.

A freeze does not affect your score or your existing creditors' ability to access your report for account management purposes.

No. Score Guardians is a credit monitoring service. We give you visibility into your credit standing and alert you to changes — we do not dispute items on your behalf, contact creditors for you, or promise to improve your credit score. We are not a credit repair organization as defined by the Credit Repair Organizations Act.

You have the right to dispute inaccurate information yourself, directly and for free, with the bureaus and creditors. We provide the tools to help you stay informed so you can act when you need to.