Credit Score Guide

Summary: Suppose that being a financial control freak makes you a model borrower on the eyes of creditors? Check your credit score or read on.

Suppose that being a financial control freak makes you a model borrower on the eyes of creditors? The answer is certainly no. I bet you’re surprised. I was.

Financing institutions never fail to review your accounts for them to determine if you are still qualified of receiving incentives that come along your application. It will also indicate if you are subject to denial or you will be granted great interest rates beneficial for your payment.

They will check how much “risk” you are or in other words, how are you going to reimburse the money you borrowed. In the United States, it is through appraisal reports from either of the three chief agencies, Equifax, TransUnion and Experian, calculated by means of software called FICO that lenders will know.

Your credit scores are calculated based on information your creditors send to the credit bureaus. But the way that your score is calculated depends on whether you or your lender requests it.

Each credit bureau has a consumer credit score that they market to the general public. Equifax has their Score Power score, TransUnion calls theirs the TransRisk New Account Credit Score while Experian markets the PLUS score. Using the same credit history for developing your consumer credit score, each credit bureau also calculates a separate score. This they supply to lenders making an inquiry.

Your credit scores are calculated based on information your creditors send to the credit bureaus. But the way that your score is calculated depends on whether you or your lender requests it.

Each credit bureau has a consumer credit score that they market to the general public. Equifax has their Score Power score, TransUnion calls theirs the TransRisk New Account Credit Score while Experian markets the PLUS score. Using the same credit history for developing your consumer credit score, each credit bureau also calculates a separate score. This they supply to lenders making an inquiry.