Everyone has a credit score, but not everyone understands exactly what they mean, why they are important or how they can influence your daily spending and money borrowing habits.
Below you will find an assortment of frequently asked questions that people have when they are just starting to learn about their credit score.
What is a FICO score?
The FICO score, which is also known as your credit score, is a number that is developed bu the Fair Isaac Corporation and helps businesses and banking / funding agencies to better understand your financial and credit history.
Why are credit scores different from each bureau?
Just like banks have different loans, checking accounts and customers, the bureaus that create and track your credit report are also different. Instead of just relying on one credit score, it’s best to have a report pulled from the top three credit score bureaus.
How is a credit score calculated?
Using five different pieces of personal information, a credit score will be determined. This information includes payment history, amount of debt, age of credit, mix of credit and credit inquiries on your account.To learn more about credit scores, how they work and how to improve yours… be sure to continue to read through our site as we have a ton of information on everything relating to credit scores.
Why don’t I have a credit score?
One of the major reasons why you probably don’t have a credit score is that you don’t have any credit history. An excellent way to build credit is to have a credit card, mortgage or loan that you can start paying against.