Credit Score Frequently Asked Questions
It can be confusing trying to understand all there is to know about credit scores. This is especially true if you are someone who is just starting to establish a
credit history, or a person who is seeking a loan. Here are ten of the most frequently asked questions about credit scores:
What is a credit score?
A credit score is a three-digit number that comes from the information on your credit report. It is the number that creditors and lenders will look at to determine
if they want to accept your application.
What is a good credit score?
In general, the higher the number, the better the credit score is considered. It can range anywhere between 300 and 990, depending on exactly which credit bureau you got the credit score from.
Who uses credit scores?
Banks, credit card companies, landlords, retail stores, places that lease or sell cars, and employers all may consider your credit score before accepting your application.
What is a FICO score?
FICO is the most popular method for calculating a credit score. This type of credit score ranges between 300 and 850.
Who are the big three credit bureaus?
Experian, TransUnion, and Equifax
What is a Vantage score?
It is the credit score generated from information that is on your credit report as reported by all three of the big credit bureaus.
Can my credit score change?
Yes it can! Anything you do that adds to or subtracts from your credit score will change the score itself. Adding new credit cards, paying off a loan, or filing for
bankruptcy will cause a significant change to your credit score. The good news about this is that if your credit score is low, you can do things to help raise it.
Why don’t I have a credit score?
If you don’t have a credit score, it is because you haven’t accumulated enough of the kind of information that appears on a credit report. Once you do, you will have a credit score.
How do late payments affect my credit score?
Late payments and skipped payments will lower your credit score. It makes you look unreliable.
What factors impact a credit score?
Some factors include the different types of credit you have, inquires to your credit report, how much debt you have, and the length of your credit history.
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