The credit score ratings of an individual or business is a numerical representation of how credit worthy they are considered to be.
This number is derived from formulas created by reviewing credit history as defined by the major credit bureaus.
The major credit bureaus credit score and the FICO score are each ways of referring to these ratings.
The three major credit bureaus are TransUnion, Experian and Equifax.
FICO is an acronym for Fair Isaac Corporation.
Another score used is the Vantage Score.
Credit scores come in ranges.
The one that most people understand is the FICO score.
Usually the range is low, moderate and high.
Each of these is assigned a numeric value.
The actual number will depend upon the scoring tool that is being used.
It's important for those seeking credit to know the number rank of their credit score and which tool is being used.
The three major credit bureaus have similar data files on most individuals who have any type of credit or public records associated with the name.
Some of the items that are included within these reports are personal data such as name, address, employment and social security number.
Account history from creditors provides a snapshot of your payment records.
Public records include information about possible bankruptcies, judgments or liens against you.
Finally, your credit file will show inquiries to the account by lenders or those offering pre-approved cards or accounts.
Credit scores are used for various purposes.
The major one is when you apply for credit.
You might be trying to obtain a home mortgage.
The rate you pay for the loan may depend strongly on the scores that appear on your credit reports.
A low score may make it impossible to you to obtain a mortgage or other credit.
Credit scores might also used when checking for employment or rental housing.
by law, each of the major credit bureaus must provide a free copy of credit reports to any customer who request it.
This should be a routine followed by everyone each year.
If you apply for credit and are turned down, you have the right to receive a copy of the report at no cost.
Once the reports are received, they should be reviewed for absolute accuracy.
It is estimated that most credit reports in the United States contain errors.
These errors may or may not affect your credit score.
Repairing your credit report might require simple notification to the offending credit bureau.
It might require providing documentation of the proof for your claims.
Many people are able to accomplish the corrections without the assistance of an attorney or credit repair service.
Many websites online offer free information about the process that must be followed.
The credit bureaus also provide written instructions with a credit report about disputed items or errors.
Credit score ratings have far reaching effects.
Poor scores can cost thousands, even hundreds of thousands of dollars in fees and interest rates.
It's critical to know your score and how to use it correctly.
This number is derived from formulas created by reviewing credit history as defined by the major credit bureaus.
The major credit bureaus credit score and the FICO score are each ways of referring to these ratings.
The three major credit bureaus are TransUnion, Experian and Equifax.
FICO is an acronym for Fair Isaac Corporation.
Another score used is the Vantage Score.
Credit scores come in ranges.
The one that most people understand is the FICO score.
Usually the range is low, moderate and high.
Each of these is assigned a numeric value.
The actual number will depend upon the scoring tool that is being used.
It's important for those seeking credit to know the number rank of their credit score and which tool is being used.
The three major credit bureaus have similar data files on most individuals who have any type of credit or public records associated with the name.
Some of the items that are included within these reports are personal data such as name, address, employment and social security number.
Account history from creditors provides a snapshot of your payment records.
Public records include information about possible bankruptcies, judgments or liens against you.
Finally, your credit file will show inquiries to the account by lenders or those offering pre-approved cards or accounts.
Credit scores are used for various purposes.
The major one is when you apply for credit.
You might be trying to obtain a home mortgage.
The rate you pay for the loan may depend strongly on the scores that appear on your credit reports.
A low score may make it impossible to you to obtain a mortgage or other credit.
Credit scores might also used when checking for employment or rental housing.
by law, each of the major credit bureaus must provide a free copy of credit reports to any customer who request it.
This should be a routine followed by everyone each year.
If you apply for credit and are turned down, you have the right to receive a copy of the report at no cost.
Once the reports are received, they should be reviewed for absolute accuracy.
It is estimated that most credit reports in the United States contain errors.
These errors may or may not affect your credit score.
Repairing your credit report might require simple notification to the offending credit bureau.
It might require providing documentation of the proof for your claims.
Many people are able to accomplish the corrections without the assistance of an attorney or credit repair service.
Many websites online offer free information about the process that must be followed.
The credit bureaus also provide written instructions with a credit report about disputed items or errors.
Credit score ratings have far reaching effects.
Poor scores can cost thousands, even hundreds of thousands of dollars in fees and interest rates.
It's critical to know your score and how to use it correctly.