Credit Score - What Is It? Why Should I be Concerned?Your score is now the most important factor that lenders use to evaluate your creditworthiness. Your credit score is a three digit score calculated by the credit bureaus from your credit history. The score was invented by Fair Isaac, a company that created a way to predict your chances of credit failure using just your credit report. This system has gained more popularity in recent years and now each of the three main credit bureaus, Equifax, Experian and TransUnion uses Fair Isaac's system to calculate their version of your score. Nowadays, people applying for home loans or car loans are nothing but a "number" - their credit score. For example, our credit scores at the time of this writing were TransUnion: 735, Experian: 715, and Equifax: 722. On each credit report are four or five risk factors that determine that particular credit report’s score. Here are some of the most common risk factors that affect your score: There are more risk factors, but the above list seems to occur most often. If you have difficulty understanding your credit report, see our contact page. I also have a credit repair forum you can be a member of to help in your credit repair. Just a few adjustments can make a drastic lifelong change to your financial future such as: You need to know what is the cause of the low score and what you may be able to do to improve it. To read more about your credit score, please click here. |