![]() How these categories are weighted depends on how long you’ve been using credit, among other factors. FICO is an analytics software company that is best known for generating consumer credit scores.įICO scores are calculated using the following information weighted differently: The traditional method is via generating a FICO score. There are several ways that credit scores are calculated. They charge higher interest if you have a low credit score to make up unpaid loans. Lenders use your score to determine what interest rates to offer based on how likely it is you may or may not repay. What Is Your Credit Score and How Is It Calculated?īefore we dig into the accuracy of credit score sites, it is important to understand just what a credit score is and the different methods for calculating it.Ī credit score is usually between 300 and 850, which indicates how likely you are to repay a loan or credit card. When it comes time to buy a car, a house, or refinancing your student loans, you can make sure you are in the best possible position. The better your credit, the better the rates, and the more money you can save when financing.Įven if you aren’t ready to take out loans, knowing your credit score will allow you to make changes to improve it for the future. Any time you apply for a loan or any form of credit, this score gives potential lenders information about your creditworthiness and determines what sort of rates they may offer you. ![]() There are many reasons you might want to know your credit score. In this article, we break down how some of the most popular credit score sites work, where they get their information, and how this compares to how credit bureaus calculate your creditworthiness. ![]() But if knowing your credit score is truly important to you, who do you trust? How do you know if what they tell you is accurate? It seems like so many websites these days want to tell you about your credit score or offer credit monitoring. ![]()
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