For all intents and purposes, there are three credit reporting agencies in the United States. They are worth noting because they calculate the all-important credit score. These credit score agencies are:  there are three major credit score agencies, or credit reporting agencies; they are Equifax, TransUnion and Experian. They are mostly responsible for gathering financial information on virtually everybody in the US, and will provide their findings to those parties that make a legitimate request for it.

Just so you know, it's not only banks or car dealers that can get access to your credit information. Others that can get it are utility companies, insurance agents, landlords and potential employers, to name but a few. In fact, many of them now rely on the data provided by the credit score agencies to get an idea of an individual's credit risk.

Furthermore, your credit score has a direct impact not only on how high or low your loan interest rates will be, but also on whether or not you can get the loan at all. In this respect, the same is true for credit cards as it is for loans.

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A key component of personal finance is financial planning, which is a dynamic process that requires regular monitoring and reevaluation. In general, it has five steps:

   1. Assessment: One's personal financial situation can be assessed by compiling simplified versions of financial balance sheets and income statements. A personal balance sheet lists the values of personal assets (e.g., car, house, clothes, stocks, bank account), along with personal liabilities (e.g., credit card debt, bank loan, mortgage). A personal income statement lists personal income and expenses.
   2. Setting goals: Two examples are "1. Retire at age 65 with a personal net worth of $1,000,000," and, "2. Buy a house in 3 years while paying a monthly mortgage servicing cost that is no more than 25% of my gross income." Having multiple goals is common, including a mix of short term and long term goals. Setting financial goals helps to direct financial planning.
   3. Creating a plan: The financial plan details how to accomplish your goals. It could include, for example, reducing unnecessary expenses, increasing one's employment income, or investing in the stock market.
   4. Execution: Execution of one's personal financial plan often requires discipline and perseverance. Many people obtain assistance from professionals such as accountants, financial planners, investment advisers, and lawyers.
   5. Monitoring and reassessment: As time passes, one's personal financial plan must be monitored for possible adjustments or reassessments.

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