In last week’s post I wrote about informally polling my friends and learning how little they know about credit.

So I set out to narrow down the essential points one needs to know about the subject. I read up on credit reports and scores on sites like myFICO.com, annualcreditreport.com and, of course, NYSE Money Sense. I also reached out to women’s personal finance expert Manisha Thakor and Gerri Detweiler, who consults for Credit.com.

Here’s my Credit “Tip Sheet”:

1. You can’t be lax about checking credit reports. Errors are very common. You can get free reports each year from annualcreditreport.com so take advantage of them.  

2. Know that three major national credit-reporting bureaus – Equifax, Experian and TransUnion – collect information for detailed credit reports on you. A credit report includes:

• Personal information: birth date, address, employer history

• Credit history: length and amount of debt, missed payments

• Public records: tax liens (like the one I have), bankruptcy filings

• Credit inquiries: who accessed your credit information and when

3. Strategize how often you check your credit reports. Manisha suggests requesting one every four months “to keep a rolling eye on your financial history”. Gerri, though, recommends you order all three at once. “If there’s a mistake,” she said, “I’d rather know sooner than later!”  

4. If you fall into one of these categories, you should check your credit reports more often than once a year and also go to myFICO.com to pay for credit scores that use TransUnion and Equifax information. 

• Young people with student loans and frequently-changing living situations

• Anyone getting divorced or separated 

• Those who suspect they are the victim of identity theft

• People who are trying to rebuild credit 

5. Have an idea of your credit score. If you don’t, Manisha recommends you purchase it at myFICO.com to find out today. Both scores using TransUnion and Equifax are offered, so take your pick.

6. FICO is the most widely-used methodology to determine credit scores. FICO scores range from 300 to 850. 

7. Most people only need to order one credit score. That is “unless you think you have a problem with your credit or are about to take out a loan for a major purchase,” Manisha says.

8. You probably don’t need to pay for your credit score every year, too. “If you consistently monitor your free credit reports,” Manisha says, “paying to check your score once every five years will suffice in the vast majority of situations.”