Scoring is a system creditors use to help determine whether you will be able to pay your future bills on time.
Information about you and your financial experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your application and your credit report.
Using a statistical program, creditors compare this information to the past performance of consumers with similar profiles. A scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points -- a credit score -- helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments when due.
Because your credit report is an important part of many credit scoring systems, it is very important to make sure it's accurate before you submit an application. To get copies of your report, contact the three major reporting agencies, Equifax, Experian (formerly TRW), and Trans Union.
A credit score is based on real data and statistics, so it usually is more reliable than subjective or judgmental methods. It treats all applicants objectively. Judgmental methods typically rely on criteria that are not systematically tested and can vary when applied by different individuals.
To develop a credit score model, a creditor selects a random sample of its customers, or a sample of similar customers if their sample is not large enough, and analyzes it statistically to identify characteristics that relate to creditworthiness.
Then, each of these factors is assigned a weight based on how strong a predictor it is of who would be a good risk. Each creditor may use its own scoring model, different scoring models for different types of loans, or a generic model developed by a scoring company.
Under the law, a credit score may not take into account certain characteristics � such as race, sex, marital status, national origin, or religion � as factors. However, creditors are allowed to use age in properly designed scoring systems. But any scoring system that includes age must give equal treatment to elderly applicants.
583-619 is bad credit score in credit score range
Good credit score ranges between 680- 750 and above this range credit score is considered excellent. Check your credit score regularly to get an idea about your credit score regularly.
IS FICO AND CREDIT SCORE THE SAME THING? IS FICO AND CREDIT SCORE THE SAME THING?
A credit report basically contains information about your credit history, whereas Credit score is a number which is generated on the basis of your credit report. Score totally depends upon one's credit record, if history is good, credit score will be high. I always check my credit score free at Freecreditscore.com.
A free annual credit report does indeed give you a credit score. Sometimes they will even give a credit score from several credit score companies just to get a better overview of your credit.
583-619 is bad credit score in credit score range
Good credit score ranges between 680- 750 and above this range credit score is considered excellent. Check your credit score regularly to get an idea about your credit score regularly.
IS FICO AND CREDIT SCORE THE SAME THING? IS FICO AND CREDIT SCORE THE SAME THING?
Credit scores are personal information. If you can tell me how your credit score is computed then I will tell you how my credit score is computed. Okay?
Credit score that is around or more than 700 is considered to be good and score below 500 is considered to be bad. It is always advised to constantly monitor your credit score.
A credit report basically contains information about your credit history, whereas Credit score is a number which is generated on the basis of your credit report. Score totally depends upon one's credit record, if history is good, credit score will be high. I always check my credit score free at Freecreditscore.com.
A free annual credit report does indeed give you a credit score. Sometimes they will even give a credit score from several credit score companies just to get a better overview of your credit.
577 is a fairly poor credit score. To have a credit score that is acceptable, you want your score to be between 620-680.
This is a fair credit score.
425 is a bad credit score.
The three credit score companies.
You can get your credit score online. You can go to www.annualcreditreport.com/, www.equifax.com/, www.creditkarma.com/ or www.experian.com/credit-education/basics.html to get your score.