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Most of us honestly believe that we have a fair idea of how a credit score is customized. The majority of people can agree on its importance. After all, the difference between good and bad credit is equivalent to a friendly smile or a drop kick out the front door. While some of you may possess strong knowledge of credit scores, many others haven’t the faintest idea how the most trivial and obscure financial movement in your life can have a profound impact on personal credit rating. For example: opening a bank account will lower your credit rating for several months. While this seems puzzling to some, the reduced credit rating has more to do with credit bureaus dubbing you as a new account user. The troubling issue is that even in the event that you have multiple checking accounts, you will still suffer the “rookie credit” penalty. What is true for bank accounts holds true for credit cards as well. Transferring a credit balance to a lower interest card will deduct points from your overall score. Credit bureaus approve of the same balance over several cards as opposed to “clean” cards with a balance on a single one. While this may seem odd to most, in reality, there is very little that makes any sense in credit reports. While you may not agree with validity of the above recommendation, at the very least it is monetary related. Surprisingly, there are several social factors that can impact your credit rating. Currently in the United States, there are approximately 40 billion dollars of unpaid consumer debt. This includes for example, parking tickets. With municipal and state bureaucracies hell bent on collecting these debts, they are turning to collection agencies to do their dirty work. Collection agencies, in an effort to get the attention of delinquent customers, have provided their information to credit bureaus who take the information into consideration. So the next time you neglect to return a library book, keep in mind that it will, in all likelihood, eventually wind up on your credit report. You can find you credit score at http://www.annualcreditreport.com