Credit Score - Definition of a Credit Score
A credit score is a statistical number based on an
analysis of a person's credit files to determine creditworthiness
of an individual applying for credit. It is used primarily
by banks and credit card companies to determine the
likelihood that the person applying for credit will
pay their bills. A credit score is derived from information
obtained from the three major credit reporting agencies
in the US (Equifax, Experian and TransUnion).
Credit lenders use credit scores to determine who
qualifies for a loan (mortgage, credit card, personal,
business loan, etc), interest rate, credit amount,
risk of loan, etc.
Calculate Your Credit Score - Credit
Score Factors
The most common credit score is FICO - Fair Isaac
Corporation. The FICO score is calculated using statistical
methods, developed by Fair Isaac, based on information
in one's credit file. FICO scores are designed to
indicate the likelihood of a borrower being delinquent
within the next 24 months. Over 90% of the largest
US banks use FICO to determine risk.
Improve Your Credit Score - Tips for Raising Your
Credit Score - Get a Better Credit Score
There are several things you can do to improve your
credit score:
