 TITLE: How to Get Credit for the First Time CONTENT: Understand How Credit Works\n---------------------------\nYour credit report is a record of how you've managed your debts. Do you make payments on time or are you always late? Are your credit cards nearly maxed out? Have you missed a student loan payment? All of this information is available in your credit report.\nBanks, credit card companies and other companies you do business with report your payment history to one or more of the three major credit bureaus (Experian, TransUnion and Equifax). That information goes into your credit report. Based on the information in your credit report, a three-digit credit score is generated. There are several different credit scoring models, and each one calculates your score in a slightly different way, but no matter what model is used, the credit score represents how creditworthy you appear to lenders.\nWhen you apply for a credit card, loan or other form of credit, the creditor will check your credit report and pull your credit score. The higher your credit score, the more confident creditors will be that you can pay them back. If you have a poor credit score, however, you may be denied credit or offered credit on more onerous terms, such as a higher interest rate. END