Credit reporting bureaus continually update credit reports as they receive information from lenders. Your credit score may change with these updates as lenders add new information to your credit report but also as old information drops off your report. How updates affect your credit score can depend on your overall credit history.

A credit bureau is an information clearinghouse that compiles information on consumers. The credit grantors, or lenders, report consumer payment history to the credit bureaus. The credit bureaus then compile that information together with information on tax liens, bankruptcies, and court judgments that is available in public records. In return, when consumers apply for credit, lenders can check credit reports to determine the creditworthiness of consumers.

Free FICO Scores have become more available to consumers since 2013, when Fair Isaac Corporation announced its FICO Score Open Access Program, which gave banks the right to share a FICO Score with consumers. Additionally, banks claim the free FICO Scores have increased customer loyalty.

FHA has a two-tier credit score system for insuring loans. First-tier loans require a minimum down payment of 3.5 percent, while second-tier loans require at least 10 percent. The first tier includes those with FICO scores of 580 or above, while the second tier includes those between 500 and 579. FHA does not insure loans with anything below a 500 credit score.

Black Friday has become known for terrific sales to kick off the holiday shopping season. If you visit some stores this Black Friday, a store clerk will likely ask you, “Would you like to save X% by opening a credit card account?”