A credit score is three little digits that can determine whether you get a loan or a credit card and the interest rate that you'll be charged.

A new survey indicates that many people are clueless about credit scores.

Executive director Stephen Brobeck with the Consumer Federation of America said 49 percent did not realize that the scores measure whether you're a good credit risk.

He also said that while 90 percent understood correctly that paying your debts can raise your credit score, nearly half said that a higher salary or large inheritance would have the same impact.

However, boosting your income or wealth would not have a direct impact on a person's credit score.

Instead, Brobeck said you've got to pay your bills on time, keep your credit balances low and take out new credit only when you really need it.

It's also good to take advantage of the program now being phased in that offers free access to your credit report each year, so you can make sure the information being used to determine your credit score is correct.

Credit scores range from 300 to 850 and are calculated from a host of criteria from consumer credit reports that can be broken down into five categories: a consumer’s payment history, amounts owed, length of credit history, new credit applied for or taken out and types of credit used, according to a group of financial services companies called Your Credit Card Companies.

For a better credit score, the group suggests that consumers should:

• Shop for a loan within a focused period of time. Looking for a mortgage or an auto loan may cause multiple lenders to request your credit report, even though you’re only looking for one loan. To compensate for this, the credit score counts multiple auto or mortgage inquiries in any 14-day period as just one inquiry. To ensure multiple inquiries do not adversely affect your credit score while you’re shopping for a loan, make them within 14 days.
  In addition, the credit score ignores all mortgage and auto inquiries made in the 30 days prior to scoring. If you find a loan within 30 days, the inquiries won't affect your score while you're shopping for credit.
• Pay bills on time. Always paying your bills on time is the best thing you can do to help your score. If you've been late in paying bills in the past, it’s important to demonstrate more timely payment patterns as soon as possible. Although late payments shown on your credit report can adversely affect your score, they will count less over time.
• Check credit reports for accuracy. Errors can happen and you may find one on your credit report. If you do spot an error, contact the original creditor and all three national credit reporting agencies -- Equifax, TransUnion and Experian -- so that the inaccurate information won't reappear later. Be sure to order your report directly from one of the three credit reporting agencies or an organization authorized by them so that your request for a credit report won’t be confused with an inquiry from a potential creditor.
• Pay off debt, don’t move it around. Opening a new credit card account to consolidate debt can lower your score for a few months. Your credit score is based on both individual card debt and the total amount of debt on all credit card accounts, so consolidating your credit card debt on one card or spreading it over multiple cards will not help your score in the long run. The most certain way to help your score is to pay down the amount you owe.

Free Credit Reports Available

The free credit report system began Dec. 1 with residents on the West Coast.

Here's the roll-out calendar:

• Dec. 1, 2004: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.
• March 1, 2005: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
• June 1, 2005: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas.
• Sept. 1, 2005: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Puerto Rico and all U.S. territories.

Under state law, consumers in Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont already have free access to their credit reports.

How To Access Free Credit Report

• Online: annualcreditreport.com
• By Phone: (877) 322-8228
• By Mail:
  Annual Credit Report Request Service
  P.O. Box 105281
  Atlanta, GA 30348-5281

Applicants are required to provide their name, address, Social Security number and date of birth. Requests should be processed within 15 days.