:: How your credit score is calculated
In case you are wondering how your credit score is calculated, let me tell you right now... knowing how credit score is calculated will help you to improve your credit score... Believe me...
Your credit score is calculated by plugging in all the information from your credit report into a special credit risk analysis software. One of these programs was invented by Fair, Isaac and Company... Why do you think they call it your FICO score?
This credit report software will analyze the information from the credit report and it will generate a Number.
Also Read: What is considered a good credit score?
This may come as a surprise to you BUT... Your credit score may not be the same in ALL the credit reporting agencies / Credit Bureaus. The reason is simple: Each credit reporting agency may use a different credit scoring software to calculate your credit score.
TransUnion and Equifax uses scores produced by FICO --> Your FICO Score
Experian does ont use FICO, they use they own "PLUS" system
All 3 companies also use VantageScore... well they came up with it (See: VantageScore Vs. FICO Credit Score)
So depending on where your credit score comes from you may find out that your credit score is different.
Since we are discussing credits score, I guess I should tell you why sometimes they refer to your credit score as your FICO score. That's because it's the most popular scoring system out there.
Now you know what FICO stands for and how your credit score is calculated, how is your Credit Score?
More Credit Score:
- How to Fix Your Credit Score the SIMPLE Way
- Bankruptcy, How it Affects your Credit and your Credit Score
- How Eviction Affects Your Credit Score
- Repossession affects your credit score
- Foreclosure affect your credit score
- FICO Score Explained
- What's a Good Credit Score?
- How To Improve Your Credit Score
- How your credit score is calculated
- What is a Credit Score?
- VantageScore vs. FICO credit score
- What is considered a good credit score?
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