[Ed note: Money Matters is a weekly column that dissects financial matters in a way that folks who aren't finance experts can understand. If have a money question you want answered by our resident expert, Shay Olivarria, please email Shay@squarerootz.net.]

Part One: Money Management in 1 Minute – Free Credit Report

Getting your credit score from all three credit reporting bureaus can be as easy as 1, 2, 3! You may even be able to get it for free. The government enacted a law (allowing each person to have access to their personal credit report for free once a year.   Annual Credit Report is the only site that provides access to all three credit reports for free once a year. Don’t be fooled by other sites offering you a free credit report. It is usually a lure to get you to buy something else.

Part Two: Reader Question

Nowadays what is considered a “good” score for applying for loans, mortgages, apartments, credit cards etc? Is it the same for all of them or are each looking for something different?

That’s a very good question. Too many times I hear folks talking about how they have “bad” credit without really understanding:

1) That they have 3 credit scores from each of the major credit reporting bureaus.
2) That each score may be different.
3) That each organization has it’s own idea of what is acceptable to extend credit.

Loans
The acceptable credit score for loans varies because the lower the credit score, the higher the interest rate. You can usually find someone to give you a loan regardless of how low your FICO score is because though you are risky, they will make some money off of the loan due to the ridiculously high (sometimes 25%!) interest rate.

Mortgages
Home loans are a little different. A year ago, you could get a home loan with a 620 middle FICO score (read my FICO article here), however due to the mortgage debacle most lenders want you to have at least a 700 middle FICO score now. The higher your credit scores, the lower your rate. If you are looking for purchase a home it is imperative that you know your scores going in so you can negotiate for a better rate.

Apartments
This is a whole different animal because of the deposit required and the usual request that the renter make at least 3 times the rent a month before taxes. All three of these pieces can be leveraged to get the apartment that you want.

Credit Cards
There are many different types of credit cards and different credit score requirements for each one. Folks with credit scores over 720 usually don’t have too much trouble getting credit cards. Those with credit scores lower than 650 may apply for secured cards, but watch out because many of those cards come with high interest rates, annual fees, and application fees. Another important thing to remember is utilization ratio. The utilization ratio is calculated by dividing the amount of credit that you have used by the amount that has been extended to you. For example, if you have a card with a limit of $1000 and you have a $750 balance, then you would divide 750 by 1000 to get .75. Your utilization ratio would be 75%. Most companies want you to have a utilization ratio under 30%. This shows that you are using  credit wisely.

Remember: it’s best to take out credit when you don’t need it because when you do, they will tell you that you are a risk. Prepare for a rainy day folks. Prepare for a rainy day.