Taking the Scare out of Your Credit Report: MMI Hosts Halloween Webinar to Educate about Credit Scores.

HOUSTON -- Today, most lending decisions are not made by one banker or one lender -- they are made by reviewing the results of a "credit scoring" system. Not understanding how your credit score is tallied can lead to frightening interest rates when applying for credit.

However mysterious it may seem, your credit report and score are made up of several pieces of your financial history and are used to determine your creditworthiness. Checking your credit report is the first step in determining where you stand, and what steps are needed to increase your score. If the thought of pulling your credit report leaves you spooked, consider registering for an upcoming Webinar, offered by Money Management International (MMI), the nation's largest non-profit credit counseling agency.

MMI's free Halloween Webinar, "Take the scare out of your credit report and credit score" on October 31 at 9:00 p.m., is designed to help take the worry out of checking and understanding your credit report. Simply visit http://webinars.moneymanagement.org/ and register on the web page. After the Webinar, attendees will be able to read a credit report, understand common credit score myths and what should be included in their file, and dispute incorrect or outdated information.

If you are uncertain about whether or not it is worth the effort to improve your score, consider the following ghoulish statistic: According to Fair Isaac & Co, a person with a FICO score of 689 can qualify for an 8.99 percent interest rate on a 60-month new vehicle loan. However, a person with a score only one point higher can obtain that same loan at the much lower rate of 7.23 percent.

Maintaining a good credit score is not quite as simple as paying bills on time and as agreed. While payment history does account for 35 percent of your FICO score, other factors that contribute include the amount you owe, who you owe, the length of credit history, and any new credit accounts you have.

While a poor credit score is not the end of the world, if you are seeking a loan, obtaining insurance or applying for a new job, a good credit history can make all the difference. Many employers now check credit histories in addition to performing background checks, as a gauge of an applicant's responsibility. Fortunately, all consumers can now receive a copy of their credit report for free, once per year, from www.annualcreditreport.com.

"When it comes to credit reports, it pays to be informed," said Cate Williams, vice president of financial literacy for MMI. "Your credit score is a snapshot of your entire credit history, and constantly changes as new information is added to your credit file; whether it moves up or down is entirely up to you."

About Money Management International

Money Management International (MMI) is a nonprofit, full-service credit-counseling agency, providing confidential financial guidance, financial education, counseling and debt management assistance to consumers since 1958. MMI helps consumers trim their expenses, develop a spending plan and repay debts. Counseling is available by appointment in branch offices and 24/7 by telephone and Internet. Services are available in English or Spanish. To learn more, call 800-762-2271 or visit www.moneymanagement.org.