What Is A Credit Score?

165

What is a credit score? A credit score, also called a FICO score, is a numerical representation of an individual’s credit history, based upon a mathematical formula, to represent an individual’s creditworthiness. Credit scores are used by lenders, such as banks and credit card companies, who look at an individual’s credit history to determine whether or not they are capable of paying back loans that they might receive in the future. A credit rating is usually based upon a credit report, financial information usually sourced from several credit agencies.

Many people do not know what a credit score actually is. There are two types of credit scores, FICO and TRW. FICO is the most widely used; however, it is also the highest interest rate. TRW, on the other hand, is generally used more for student loans and mortgages.

To answer the question of what is a credit score, it is necessary to know what a credit report actually is and what it consists of. Credit reports, also called credit histories, are the written statements that a lender can obtain from a debtor that declare their capacity to payback loans. These reports list the amount of debt that a borrower has and the manner in which the debt was handled, as well as any past bankruptcies. A good credit report shows that the borrower has been responsible to handle their money and that they will be able to make payments if they become overextended.

The best way to find out what is a credit score, then, is to go to major credit reporting agencies. Equifax, Experian and TransUnion are the three major credit reporting agencies, and they offer you the ability to get your credit reports online for free. If you go to the website of each agency, you will be able to fill out an online application to get your free credit reports. This gives you a chance to see what information the agencies have on file about you.

You can go to the website of each of the agencies and enter your name and address so that the names of your current creditors are entered into the computer system. You will then be given your credit report. If you want to know what is a credit score, your report will reveal whether or not all of the credit accounts listed on your report are active. It will also reveal the total amount of debt that you have with each company.

So, what is a credit score? This is a number that is calculated based on the information that is contained on your credit report. It is a way to rate your creditworthiness. Your creditworthiness is determined by how you manage your outstanding credit card balances. It can also be determined by how long you have held these credit accounts and what type of credit accounts you have.

So what is a credit score and what are the different credit scores that are involved? They can all be found on the internet at different credit bureaus’ websites. They all are used to determine your creditworthiness. For example, your FICO score would include all of the information that the three major credit bureaus have in their records regarding your financial history. It would include the type of account that you have, the balance you have on it, any collections, and the length of time that you have had that particular account open and unpaid. It would also include the types of other accounts that you have open.

Now that you know what a credit score is, what is a credit score report? These reports are essentially what you get from all of the different credit reporting agencies as well as the ones that determine your creditworthiness. These reports contain your credit scores, which are based primarily on the information contained in your history. They are very important and necessary for lenders who are judging your credit worthiness. It can also help protect you as well as your family from identity theft. It is therefore important that you know what a credit score is what is a credit score report so that you can use this information in your everyday life.