Your Credit Score Calculation
Wednesday November 21, 2007
Your credit score is a three-digit number that creditors and lenders use to quickly make a credit decision about you. The score ranges from 300 to 850 and is calculated using the information in your credit report. Like test grades, higher scores are better.
Inside your credit report there are details about how you've handled your credit since your very first credit account. It includes payment history (35% of your score), level of debt (30%), length of credit history (15%), number of inquiries to your report (10%), and the types of accounts you have (10%).
Credit scoring models gives each of these a value and uses an algorithm to come up with your credit score. Even though the exact formula for calculating your credit score isn't given out, knowing how information weighs in your report can help you maintain a good score.
More on Credit Scores and Reports:
Inside your credit report there are details about how you've handled your credit since your very first credit account. It includes payment history (35% of your score), level of debt (30%), length of credit history (15%), number of inquiries to your report (10%), and the types of accounts you have (10%).
Credit scoring models gives each of these a value and uses an algorithm to come up with your credit score. Even though the exact formula for calculating your credit score isn't given out, knowing how information weighs in your report can help you maintain a good score.
More on Credit Scores and Reports:
Comments
Someone needs to check into the operations of these 3 national credit bureaus. They have the power to keep a person from being hired on a job in America and they have hurt and destoryed more lives and homes than anything else. At the end of the day we will know the truth of these powerful people who literally control the county of America. so Sad
Yes that’s true,… Someone should check the operations of 3 national credit bureaus… So that other will not think that they cheated in bureaus.
Yes they destroyed more lives and homes in that way, coz we don’t know what they’re way on how they calculating our credit scores… I wish someone should make an action on that!…