Your Credit Score is different from your credit report. A credit score is a number compiled from your credit report which will give a lender the power to determine whether they should give you credit with their products or services.
Your score is actually called your FICO score. In the 1980′s, The Fair Isaac Company designed custom soft ware that would give lenders a number derived from a person credit history, that would help them in making the decision of whether your were credit worthy or not. This is called your FICO score.
Credit reports will often include a lot of personal information and other things that have to do with your personal payment history. The score is not a part of this report, as it is calculated separately. There are programs available for you to obtain a copy of your credit report annually to see the different changes that took place over the year. This will also help you to find out if there are any mistakes that are on it.
The three credit bureaus that keep information pertaining to credit are Trans Union, Equifax and Experian. These reports are what makes up your actual FICO score. Depending on the information obtained in these particular reports, you can actually have a different score in relation to each one. There are several ways that you can go about paying for access to your personal FICO score.
Having a high credit or FICO score is important for the simple reason that this number will follow you throughout your lifetime. When applying for loans, mortgages or consumer credit, your score being at the higher level is important. The score ranges from 300 to 850, with 850 being the highest credit score you can have.
If you are planning to make a purchase of a big ticket item, such as a home or car, it is in your best interest to know the score and have a copy of your credit report. Make sure both are up to date and correct. The higher the score, the lower the interest rate will be, allowing those that pay their bills on time and in full, save a little money.
You should always work to improve your credit score. Making sure that you pay all of your debts on time is the best way to get started.
A credit score is a number derived from your credit report which will give a lender the ability to establish whether they should give you credit with their product or service. improve credit score with credit repair, now!
