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 often contain a lot of personal information, such as the name, birth date and address of the consumer. A credit score is not attached to this report, it is added up separately, but it is directly related to the report. There are three places to obtain a copy of a credit report and that is through the credit bureaus. It is wise to see a copy of the report in case there are changes to be made or mistakes that need to be corrected.
The FICO number is based on the credit reports collected from the three major credit reporting agencies which include Equifax, Trans Union and Experian which may give you three different FICO scores at one time. This information is not as accessible as the credit report as there is a fee to request this document.
There are a lot of advantages to having a high FICO score. The most important benefits involve being able to get credit extended to you in order to purchase big ticket items such as vehicles, homes or other items. Scores can fall between the range of 300 to 850. A perfect credit rating is very hard to come by.
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.
Improving your score is relatively easy if you have made mistakes in the previous years. There are a few things to remember when trying to repair low credit numbers which include keeping older accounts open which are still in good standing as well as having your debt load manageable and making your payments on time.
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 or not for their product or service. improve credit score with credit repair, now!