|Everything You Need To Know About Your Credit Score|
Credit score is a sum used by lenders as an indicator of how likely you are to repay your loans. Your credit score is generated by a mathematical formula utilizing the data from your TransUnion, Equifax or Experian credit reports. Lenders have been using credit scores as part of the lending decision for over than 20 years.
What factors influence my credit score?
Various factors determine your credit score, including the following:
How does my credit score affect me?
Yourcredit score is an important indicator of your financial health. Lenders use your credit score to determine:
While your credit score is a key determinant of your Creditworthiness, lenders also examine the information on your credit report and your loan application. Regularly checking your credit report enables you to:
What is a “good” credit score?
There are several types of credit scores available. Typically, the higher the score, the better. Each lender decides what credit score range it considers to be a good Credit risk or a poor credit risk. For this reason, the lender is the best Source to explain what your credit score means in relation to the final credit decision. After all, they determine the criteria used to extend credit. The credit score is only one component of information evaluated by lenders.
What is Credit Scoring?
Credit scoring is a method used by lenders to help decide whether or not you are a good candidate for a loan.
Lenders employ a credit scoring system to determine your credit score:
Generally speaking, positive credit characteristics make your score higher and help you to qualify for better loans. Negative characteristics make your score lower and may interfere with your ability to qualify for the best loan terms.
How is a credit scoring model developed?
A lender creates a credit scoring model by using several criteria:
About The Author
Michael Anderson writes for http://www.goodcreditreport.info/ where you can find out more about good credit reports and other topics.