Anatomy of a Credit Score

As we’ve mentioned, the exact math equation that creates a credit score is unknown, but we do know that it is based on the information in your credit report, which is then compared to millions of other people’s information. THE FICO RANGES: 760-900   Best 700-759 660-699 620-659 580-619 300-579   Worst The median FICO score is 720 out of a possible 900. The riskiest customers have scores below 600. Higher scores are better and translate to lower interest rates. Ways to improve your credit score: Consolidating debt, like using your line of credit to pay off credit cards is one way to [...]

Anatomy of a Credit Score 2017-04-13T15:42:13+00:00

How to understand your credit score?

A credit score is a three-digit number based on the information in your credit report. Credit bureaus don’t release the exact math behind this number, but what we do know is that your credit score increases when you can demonstrate that you use credit responsibly (paying bills on time) and that your credit score decreases when you show that you have difficulty managing credit (a bill is paid late or goes to collections). Your credit score, also known as a FICO score, is used to tell a lender the likelihood that you’ll be able to pay back the money they’re lending. [...]

How to understand your credit score? 2017-04-13T15:08:00+00:00

What is a credit report?

A credit report is a summary of your credit history. This is basically a list of all of the ways that you’ve used or applied for credit and information about your behavior with that credit. Your credit report begins the first time you borrow money or apply for credit. This could be applying for a credit card or even using a “buy now, pay later” promotion at a store. Each time you do this, the lender sends information about these accounts to the credit reporting agencies so that they can compose your credit report. Personal information that appears in public records, [...]

What is a credit report? 2017-04-13T15:14:17+00:00