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
What
does your score mean?
This rating system is meant to develop a
snapshot of the risk you currently represent to
a lender. Several parameters in your credit
file, including length of credit history, number
of open accounts, loans, mortgages, public
records, and others are formulated to produce a
three-digit score between about 300 and 950.
There are other scores used by lenders and
insurance companies (some of which are developed
by FICO) such as Application and Behavior
scores. These other scores take other
information into account. Usually a lender will
use a combination of your credit score with
other factors when determining your risk. They
all have the same objective, to determine the
borrower’s potential risk. Regardless of whether
the score was generated by FICO or a system
based on FICO parameters, they all yield an
industry standard three-digit score. This score
places the borrower in one of three main
categories (we named the third one ourselves.)
More tips like
these may be found at
Consumer-Debt-Counseling.com. |
