If you are a consumer in the United States, chances are you have a FICO score. FICO stands for Fair Isaac Corporation, the brains behind the formula used to score personal credit by the three major credit bureaus: Equifax, Experian, and TransUnion. Fair Isaac does not release the formula, but some helpful details of how the scores are figured are known.
There’s not just one Continue Reading
The very basis of credit scores is for lenders to determine how likely it is that you will repay any money that they lend to you. A ‘lender’ can include anyone from a credit card company, to a mortgage broker, and credit union to a student loan office. All of these people look at your credit score to determine how risky it is to loan money to you.
Therefore, it makes sense that a significant portion of your credit Continue Reading
Your credit score is calculated by using mathematical formulas that analyze your creditworthiness. The formulas consider the amount and types of debt you owe and then analyze and compare your repayment history with thousands of other consumers to determine your credit score.
Credit scores are designed to measure the risk of default by taking into account various factors in a person’s financial history. Although the exact Continue Reading
When you fill out an application for a mortgage, car loan or even a credit card, lenders will consult your credit score to determine whether you are an acceptable risk. While this may sound harsh and uncaring, the premise behind a credit score is to help place all borrowers on equal footing using a broad sampling to determine proper credit risk.
Determining Factors
Credit scoring models use several methods o Continue Reading
Category : Credit
What is your credit score?
A credit score or number indicates to lenders how likey you are to repay or default on a loan.
The program used to generate this number is very complex. The bureaus use secret calculating techniques to reach these numbers. There are various formulas used. Basically put, your information is entered into a computer. The program calculates the data informat Continue Reading
