Understanding what your credit history is — what's in it, what's not in it, and how you can improve your credit profile — can help you reach your financial goals. If you've ever been turned down for credit, you're probably all too familiar with the power that your credit history has over your ability to borrow. But even if you've never had a credit problem, the more you know about what your credit report is, how your credit score is calculated, and who uses your credit reports and scores (it isn't just lenders anymore) can only help you make more informed financial decisions.

It might seem strange — and even a little disturbing — to know that the way you've used credit in the past is tracked in careful detail. And you might feel that you have no control over what potential creditors think about your creditworthiness. But nothing could be further from the truth. Your decisions and your actions determine your credit profile — and you can always take steps to make that profile stronger.