There are 3 rules to building credit:

1. Keep your balances under 30% of your credit limit.
2. Always pay on time.
3. Try to put a little more money towards the principal every month.

1. Don't close unused credit cards 2. Avoid multiple credit inquiries unless they are "soft hits" such as promotional inquiries. 3. Write letters to all 3 bureaus, TransUnion, Equifax and Experian if you see credit history derogatories that are not yours. 4. Pay all of your bills on time. 5. Pay down your balances as soon as possible starting with the lowest balances first.

As a consumer you are entitled to 1 free credit report annually. Requesting your credit report allows you to review your credit score and account payment history. Additionally, you are allowed to report and dispute any information you deem to be inaccurate. You may access your free annual report from the three major reporting companies at www.annualcreditreport.com. You may also request your report if you are denied credit within the same calendar year. Finally, be prepared to verify your identity. Contact a HUD approved housing counseling agency for help with understanding your credit report.

Once you receive the report, it's important to verify its accuracy. Double check the "high credit limit,"'total loan," and 'past due" columns. It's a good idea to get copies from all three companies to assure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$20, are usually charged to issue credit reports but some states permit citizens to acquire a free one. Also, check out www.freecreditreport.com.

According to NeighborWorks America, the breakdown is as follows: 1. Payment history - 35% 2. Amounts owed - 30% 3. Length of credit history - 15% 4. Types of credit - 10% 5. New credit - 10%

Housing counselors will typically advise a score of 620 or higher.

The statute of limitations varies from state to state, and may be different for various types of consumer debts. In many states, they often range from four to six years, calculated from the last payment on the debt. If you are considering not paying, check your state's law. By checking your credit report, you will know if the debt has been sold to another collection company. At that point the statue of limitations date may begin again. Old unpaid debt can stay on your credit report for 7 years and 180 days and should fall off after.

The Vantage Score is a credit rating system developed by the top three credit agencies, Experian, Equifax and TransUnion. It was launched in 2006 and competes directly with the Fair Isaac Corporation's FICO score, the most widely used credit scoring system. The Vantage Score rates an individual's credit from 501 to 990, and at the same time gives each individual a letter grade ranging from A to F. It is used more in consumer lending and auto lending than in mortgage risk assessment.

1. Old derogatory accounts with balances owing 2. Public record items 3. Opening of new accounts 4. Significatnt balance increases 5. Customers do not pay as agreed, and this is reported