 |
Credit Score
Info
A credit score attempts to
quantify the likelihood that a prospective borrower will fail
to repay a loan or other credit obligation satisfactorily.
Free Annual Credit Report
A credit score is based on a
subset of the information in an individual's credit report.
Lenders such as banks and credit card companies use credit
scores to manage the risk posed by lending money to consumers.
Library Fines - Credit Ratings
Examples of such uses include determining who qualifies for a
loan, assigning an interest rate, assigning credit limits, and
managing accounts that are already open (for example,
treatment of accounts that are in default).
The use of credit or identity scoring prior to authorizing
access or granting credit is an implementation of a trusted
system.
|
|
FICO, an acronym for
Fair Isaac Corporation
(traded publicly under the symbol FIC)
often refers to the best-known credit score in the United
States which is calculated using mathematical formulae developed by
this company. This score is one of the most important factors in
obtaining credit in the United States. For institutions that use
scores as a factor in their lending decisions, scores below certain
numbers (typically set by each lender's risk management department)
may result in denial of credit, or credit being offered at a higher
interest rate.
The three major credit reporting agencies in the United States,
(Equifax, Experian and Trans Union) calculate their own versions of
this score, which goes by different trademark names at each credit
bureau: Beacon at Equifax; Empirica at Trans Union, and Fair Isaac
Risk Score at Experian. These versions, while all developed for the
agencies by Fair Isaac, are believed to differ slightly. Fair Isaac
also offers multiple variations on their popular score, for example
"Classic" FICO or "Next Gen" FICO.
More Credit Score and FICO Information. (How to improve your credit
score) |
