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What is a FICO® Score?
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What is the difference between a FICO score and a credit score?
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Why do different sources show different FICO scores?
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What is a "good" credit score?
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What factors influence my credit score?
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How does my credit score affect me?
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Why does my FICO score change from time to time?
What is a FICO® Score?
A FICO score is a numeric score which can range between 300 and 850 and is a
measure of your creditworthiness. Consumers with higher scores represent a lower
risk of defaulting on their loans and are considered by lenders to be more
desirable customers than those with lower credit scores. For more information
regarding FICO scores, visit www.myfico.com.
What is the difference between a FICO score and a credit score?
A credit score is a value generated by utilizing the data from your credit
report. Your credit score is a figure used by lenders as an indicator of how
likely you are to repay your loans. While there are various types of credit
scores available in the marketplace, we display a score called the FICO score.
A FICO score is a numeric score which can range between 300 and 850 and is a
measure of your creditworthiness. Credit scores are often called "FICO scores"
because most credit scores used in the U.S. are produced by Fair Isaac and
Company, or FICO. FICO scores are provided to lenders by the three major credit
reporting agencies: Equifax, Experian, and TransUnion.
The FICO score from each credit reporting agency considers only the data in your
credit report at that agency. If your current scores from the three credit
reporting agencies are different, it's probably because the information those
agencies have on you differs.
Why do different
sources show different FICO scores?
The FICO score displayed on this website is calculated as a credit card specfic
FICO Score and is determined as of a certain date (usually for the preceding
month) as indicated with the score. If you purchase a credit report product from
a credit bureau with a FICO credit score, that score will most likely be
different because it may be based on a different calculation (such as the
Classic FICO Score) and includes your current credit information.
It is also important to note that your score may be different at each of the
three main credit reporting agencies. The FICO score from each credit reporting
agency considers only the data in your credit report at that agency. If your
current scores from the three credit reporting agencies are different, it's
probably because the information those agencies have on you differs.
What
is a "good" credit score?
There are several types of credit scores available. Typically, the higher the
score, the better. Each lender decides what credit score range it considers to
be a good credit risk or a poor credit risk. For this reason, the lender is the
best source to explain what your credit score means in relation to the final
credit decision. After all, they determine the criteria used to extend credit.
The credit score is only one component of information evaluated by lenders.
What factors influence my
credit score?
Various factors determine your credit score, including the following:
· Payment history
· Outstanding debt
· Length of credit history
· Severity and frequency of derogatory credit information such as bankruptcies,
charge-offs, and collections
· The amount of credit used compared to the credit available
How does my credit score affect me?
Your credit score is an important indicator of your financial health. Lenders
use credit scores to determine:
· Whether or not you are a good candidate for a loan
· What type of interest rate you will pay
While your credit score is a key determinant of your creditworthiness, lenders
also examine the information on your credit report and your loan application.
Regularly checking your credit report enables you to:
· Be informed of the most up-to-date information in your credit history
· Correct any inaccuracies, to make sure that your credit data is a true
depiction of your credit record and increasing your chances of receiving credit
under the best possible terms.
Why does my FICO score
change from time to time?
The credit bureaus calculate your FICO score based on the information contained
in your credit file. As your credit history changes, your FICO score will also
change. In addition, we sometimes obtain information from different credit
bureaus at different times (for example, we may obtain your score from one
bureau when your account is opened and from a different bureau to review your
account later on). The information in your files at the various credit bureaus
may vary because some creditors report information only to certain credit
bureaus and not to others.
What do the terms in my credit report snapshot mean?
Your credit report snapshot is an overview of some of the items in your credit
report, including:
Number of Accounts — A range of the
total number of accounts (or "trades") being reported as part of your credit
report. This range includes accounts in collections but excludes lost/stolen and
transferred accounts.
Open Accounts — The range of accounts as
part of the total number of accounts being reported on your credit report as
open within the past six months. This range excludes closed, transferred and
lost/stolen accounts, as well as accounts in bankruptcy or other legal
designations.
Closed Accounts — A calculation of the
number of open accounts subtracted from the total number of accounts.
Inquiries — A range of the number of
times your credit report is accessed within 24 months for use in evaluating your
credit risk. This range excludes auto loan inquiries, in-house or account
maintenance inquiries, and promotional inquiries such as solicitations.
Derogatory Items — A range of the items
viewed as derogatory for credit evaluation including accounts in poor standing
120 days or worse. Accounts in collections must have a balance greater than $100
to be included as a derogatory item. This range excludes accounts in bankruptcy.
Number of Delinquencies — The number of
accounts, or trades, that are currently being reported as delinquent. This range
includes trade lines reported within the past six months and serious derogatory
items. This range excludes accounts in dispute.
Total Revolving Balances — This is the
dollar amount of your total revolving balances. This includes open and closed
accounts, as well as unsecured loans. A trade line must have been reported on
within the past six months to be included in this figure. Total revolving
balances excludes lost/stolen, disputed and transferred accounts, mortgages,
auto loans and education loans.
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