:: What is a Credit Score?
Find out what credit scoring is and how it affects you
Credit scoring is a system creditors use to help determine whether to give you credit
Credit Scoring is system used to determine if youâ€™d be a good risk for credit cards and auto loans.
credit scoring is also used to help creditors evaluate your ability to repay home mortgage loans.
Hereâ€™s how credit scoring works:
- All the information on your from your credit application and your credit report is collected .
- Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles.
- A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt.
- A total number of points â€" a credit score â€" helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments when due.
That's why it is important to keep the information on your credit report accurate. When you clean your credit, you improve 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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