Credit Report - FICO Score - Information

Welcome to the credit reporting information page. Credit Reporting Agencies collect information about you and your credit history from public records, your creditors and other reliable sources.

Your credit report provides information to current and prospective creditors to help you make purchases, secure loans, pay for college educations and manage your personal finances. Credit reporting makes it possible for stores to accept your checks, banks to offer credit and debit cards, businesses to market products, and corporations to better manage their operations to benefit the world's economy and financial companies through interest.

Credit reporting agencies make your credit history available to your current and prospective creditors and employers as allowed by law. Credit Reporting agencies do not grant or deny credit - they only report it. Keep reading...

How is My Credit Score Calculated?

A credit score is a value assigned to several criteria used in making lending decisions. Criteria include the amount you owe on non-mortgage-related accounts such as credit cards, your payment history and credit history. Scorers take this information from your credit report and plug it into formulas that calculate a value representing the amount of risk you pose to a lender. That value takes into account the track record of other consumers with similar credit profiles. By looking at this value, or score, lenders are able to roughly gauge whether it's a good idea to extend you credit.

Fair Isaac calculates the widely used FICO credit score on a scale ranging from 300 to 850. The higher, the better. It is used nationwide by lenders to judge credit worthiness. The score uses information from one of the three main credit bureaus: TransUnion, Experian and Equifax. It's possible there are discrepancies among information held at each of the bureaus that could affect your score and the interest rate you receive.

How can I Improve my Credit Score?

To improve your score it's a good idea to make sure that the data each bureau has on you is consistent and up to date by ordering a copy of your credit report about once a year and disputing any inaccuracies. You also should be aware of what affects your score to help minimize the damage you can potentially do to it. That means keeping a low balance-to-available credit ratio on your credit cards, paying your bills on time, keeping your costs under control, and maintaining a steady job.

What Else Affects my Ability to Qualify for a Loan Besides my Credit Score?

A credit score is just one component of the credit evaluation. This is especially so in the case of mortgages and car loans. In examining these types of applications, a lender will look beyond your raw credit score to scrutinize your payment history, among other things. For instance, the fact that the late payments on your credit report were on a small credit card (as opposed to a mortgage) could work in your favor. Lenders also take into account such factors as your income and earning potential, both indicators of your ability to repay a loan. Two borrowers with above-average FICO scores of 660 can get different interest rates, based on their existing debt burden and ability to meet required payments based on their income.

Is my Credit Score Treated the Same for Different Types of Loans?

Typically no. A mortgage loan, by virtue of its size and long repayment terms, will usually require you to have a higher score to qualify for a favorable rate than, for example, a credit card. But the nature of the loan may also play a role. So it's possible that given a particular score, you might get a prime rate with one lender, and get a higher rate with another