1. Why your credit score matters
How your credit score affects you
What it costs long term to have a poor or mediocre credit score
How credit scoring came into being
How credit use has changed over the years
Consumer's fight for truth about credit scores
Credit controversies
Credit scoring's vulnerability to errors
Credit scoring's complexity
Credit scoring's use for noncredit decisions
Credit scoring's potential unfairness
Conclusion
2. How credit scoring works
What is a good score?
Your credit report : the building blocks for your score
How your score is calculated
The five most important factors
Your payment history
How much you owe
How long you've had credit
Your last application for credit
The types of credit you use
Your credit scorecard
Your results might differ
How do I get my score?
3. Improving your score, the right way
Step 1 : start with your credit report --
Check the identifying information
Carefully review the credit accounts
Parse through your inquiries
Examine your collections and public records
Dispute the errors
Step 2 : pay your bills on time
How to make sure your bills get paid on time, all the time
Automatic payments
Recurring credit card charges
Online bill payment
Just pay your bills as they come in
Step 3 : pay down your debt
You need to reduce what you owe, rather than just moving your balances around
You might need to change your approach to paying off debt
You need to pay attention to how much you charge, even if you pay your balances off in full every month
How to find money to pay down your debt
Step 4 : don't close credit cards or other revolving accounts
Step 5 : apply for credit sparingly
How to get a credit score if you don't have credit
Check your credit report, if you have one
Set up checking and savings accounts
Use someone else's good name --
Apply for credit while you're a college student
Apply for an alternate card
Get an installment loan
Credit scores without credit --
4. Credit scoring myths
Myth 1 : closing credit accounts will help your score
Myth 2 : you can boost your score by asking your credit card company to lower your limits
Myth 3 : you can hurt your score by checking your own credit report
Myth 4 : you can hurt your score by shopping around for the best rates
Myth 5 : you don't have to use credit to get a good credit score
Myth 6 : you have to pay interest to have a good credit score
Myth 7 : adding a 100-word statement to your file can help your score if you have an unresolved dispute with a lender
Myth 8 : your closed accounts should read "closed by consumer," or they will hurt your score
Myth 9 : credit counselding is worse than bankruptcy
Myth 10 : bankruptcy hurts your score so much that it's impossible to get credit
5. Coping with a credit crisis
Step 1 : figure out how to free up some cash
Step 2 : evaluating our options
Task 1 : prioritize your bills
Task 2 : match your resources to your bills and debts
task 3 : figuring out a repayment plan
The real scoop on credit counseling
Should you file for bankruptcy?
The type of bankruptcy you file matters
Step 3 : choose your path and take action
Option 1 : the pay-off plan
Option 2 : credit counseling
Option 3 : bankruptcy --
6. Rebuilding your score after a credit disaster
Part I : credit report repair
Scrutinize your report for serious errors
Know your rights
Organize your attack
What you need to know about unpaid debts and collections
What you need to know about statutes of limitations
Should you pay old debts?
Paying old debts can actually hurt your credit score
Just contacting an old creditor can leave you vulnerable to a lawsuit
You're often not dealing with the original creditor
You might be exposing yourself to some pretty nasty characters
"But you've got the wrong guy!"
Part II : adding positive information to your file
Try to get positive accounts reported
Borrow someone else's history
Get some credit or charge cards if you don't have any
Apply for a secured card
Get department store and gas cards
Get an installment loan
Consider a cosigner
Make sure your credit limits are correct
Part III : use your credit well --
Pay bills on time
Use the credit you have
Keep your balances low
Pace yourself
Don't commit the biggest credit repair mistakes
Hiring a fly-by-night firm
Failing to get it all in writing
Reviving the statute of limitations
7. Identify [sic, i.e. Identity] theft and your credit
How to reduce your exposure to identity theft
Buy a shredder
Get a locking mailbox
Protect your outgoing mail
Keep track of your receipts
Keep your financial documents under lock and key
Get stingy with your social security number
Know what's in your wallet
Ask about shredding policies
Don't let your debit card out of your sight
Opt out of credit card solicitations, junk mail, and telemarketing
Don't use a cell or cordless phone to discuss financial matters
Be wary of telephone solicitors and emails purporting to be from financial institutions
Monitor your social security statements
Monitor your credit reports
Does credit monitoring work? --
What to do if you're already a victim
Keep good notes of every conversation you have regarding the ID theft
Contact the credit bureaus by phone and then with a follow-up in writing
Contact the creditors by phone and then with a follow-up in writing
Contact the police or local sheriff
Contact bank and checking verification companies
Contact the collection agencies
Get legal help
Don't give up
When parents steal
What to do if the credit bureau won't budge --
8. Emergency! Fixing your credit score fast
Repairing your credit in a matter of hours : rapid rescoring
Boosting your score in 30-60 days
Pay off your credit cards and lines of credit
Use your credit cards extremely lightly
Focus on correcting the big mistakes on your credit reports
Use the bureaus' online dispute process
See if you can get your creditors to report or update positive accounts
What typically doesn't work
Disputing everything in sight
Creating a "new" credit identity
Closing troublesome accounts
Paying off collection accounts
9. Insurance and your credit score
History of using credit scores to price insurance premiums
But what's the connection?
What goes into an insurance score
Keeping a lid on your insurance costs
Start thinking differently about insurance
Raise your deductibles
Don't make certain kinds of claims
Be a defensive driver
Use the right liability limits
Drop collision and comprehensive on older cars
Shop around
Protect your score
10. Keeping your score healthy
The do's of credit health
Pay off your credit card balances
Have an emergency fund
Have adequate insurance
The don'ts of credit health
Don't buy more house than you can afford
Don't overdose on student loan debt
Don't raid your retirement or your home equity to pay off credit cards
Credit and divorce : how your ex can kill your score
Get your credit reports
Take action
Don't be late
Dealing with mortgages, car loans, and other secured debt
Consider a fraud alert
Look for lenders who aren't FICO-driven
In conclusion : the three-year solution.