The meaning of credit scores

Credit ratings measure the borrower's financial soundness. With the credit score information to assess the borrower is subject to the risks of lending money to the borrowers. Credit bureaus and Fair Isaac Corporation, in the strict confidentiality of the mathematical calculations. Calculation is based on a large financial data analysis. But not the public know how the credit bureau to Fair Isaac's guests. In any case, the calculationDifficult to understand the public.
The lender will know how many loans, the fees, interest rates and conditions under which the borrower's credit score. The borrower can obtain a higher credit score for a better interest rate, reduce costs.
Credit score, Fair Isaac Corporation
Fair Isaac company, but also the well-known FICO. FICO The most well-known lending institutions to provide financial condition indicators. TheFICO credit ranging from 300-850 hours of a 660 credit score is a potential borrowers, including tainted credit history and limited sub-prime mortgage borrowers. A high credit score is a better financial position.
Most of the borrower's credit score 600-800. Lending institutions are the preferred average of more than 720 credit score. In the United States, an average of 680 pairs of the borrower's credit score.
In the credit scoring35% paid on time, 30% of the credit usage for 15% of the length of credit history 10% of the loan types and 10% of the loan application frequency.
<br> Credit score credit bureaus in the United States, the three major credit bureaus Equifax, Experian and TransUnion. In the Equifax, Experian and trans-union credit report, even willing to per person per year. Credit report, personal financial history.
Credit BureauCreate your own credit score. Credit score from 0 to 100% or more. The higher the value of the loan look better. Typically, this value is between 60 to 70%.
The final thought <br> the credit score is not the age, sex, occupation, income, education, religion, nationality, marital status, and formulas. Equal Credit Opportunity Act prohibits age, race, use of occupation, income, education, religion, nationality, marital status, and to determineFinancial position.
Late loan payments, loans attitude, lack of credit and credit card usage to bring under the control of the credit score down. There is no credit history, lenders do not know how to handle their financial situation, borrowers.