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What are Credit Scores?
Credit scores are determined by a number of factors. Each of these factors contribute to a potential lender's view of how likely you are to pay back your loan on time. A lender computes credit scores based on data received from TransUnion, Equifax and Experian, which are the three major national credit reporting agencies. View your credit report and score now.
Some of the factors that affect credit scores include:
- Payment history
- Outstanding debts
- Length of your credit history
- Detrimental credit information, such as bankruptcies, charge-offs, and collections
- The amount of credit used compared to the credit available
Credit scores are used by a wide range of institutions and businesses to determine creditworthiness. To most lenders, credit scores are an important indicator of your financial standing. They can be used to determine whether or not you are a good candidate for a loan, and if you are, what interest rate you will receive.
Credit scores are determined by the information in your credit reports, so it is important to check your credit report frequently to make sure this information is accurate. This will allow you to stay up-to-date on the information contained in your credit history, and correct any mistakes that may appear. Credit scores can have a large effect on your financial future, and staying current with the information contained within yours can end up saving you a significant amount of money. To order your credit bureau score for each of the three major reporting agencies, please follow this link: Credit Scores and Reports.
There are a variety of credit scores available. Each lender has the discretion to decide what credit scores constitute a good credit risk or a poor credit risk. Because of this, the lender is the best resource for finding out the optimal credit score for their services. A Credit Score Report and Analysis from TrueCredit can tell you in advance how a potential lender will view your financial profile, saving you time and money when you go shopping for a mortgage, credit card, or other type of loan.
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