Understanding Your Credit Score
What Does Your Score Mean?
Prime, Sub-prime & Shafted Ratings
How
Much Does a Low Score Benefit?
How
are Credit Scores Calculated
What
Factors affect Your Score
Cracking
the Credit Code
Improving Your Credit Score
Credit Scoring Facts
Main Credit Tips Index
How
are credit scores calculated?
The methods of calculating your FICO may differ
slightly depending on the credit bureau. When
obtaining your score from one of the Credit
Bureaus it is important to understand that your
score does not come directly from FICO. It is
adapted to each bureau and is given its own
name:
Equifax uses “Beacon”, Trans Union uses “Empirica”,
and Experian uses “Experian/Fair Isaac.”
These scores are also referred to as your
“Bureau Scores.”
Since your score is derived from your bureau
data, it will change every time your reports
change. However your score is calculated, it
will always take into consideration many
categories of information. No one piece of
information or factor determines your score. As
the information in your credit report changes,
the importance of one or several factors may
change in your FICO score. Lenders look at many
things when making a credit decision, including
your income and the kind of credit you are
applying for. However, your FICO score does not
reflect these facts as it only evaluates the
information retained by the credit reporting
agency.
More tips like
these may be found at
Consumer-Debt-Counseling.com. |
