ABOUT YOUR CREDIT
SCORE
· What is a credit score?
· Why does my score matter?
· Why don't I have a score?
· Is there more than one type of score?
· What is a Credit Score?
· How can I get my credit score?
· What do lenders consider a "good" score?
· How can I improve my score?
· How many inquires will hurt my score?
· Does pulling my credit report hurt my score?
· How often does my score change?
What is a credit score?
Generally, credit scores are a representation of your creditworthiness. Lenders
use these scores to determine whether or not to grant you credit. Many factors
go into your score, including your payment history, the amount you owe, who you
owe, and the length of your credit history. The number of times you apply for
credit also can affect your score.
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Why
does my score matter?
Lenders use credit scores to determine whether or not to grant you credit. Your
score also dictates how much you will pay for the credit you acquire. For
example, someone with a high credit score will probably qualify for loans with
lower interest rates than someone with less-than-perfect credit.
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Why
don't I have a score?
If you have little or no experience using credit, there is no history to judge
your future creditworthiness. To establish a credit history, you might consider
applying for a secured credit card through your bank or credit union.
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Is
there more than one type of score?
Yes, different lenders have different criteria for approving loans. Therefore,
lenders use a variety of credit scores (many are even customized).
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What
is a Credit Score?
The Credit Score™ is the only credit score designed specifically
for consumers. A conventional three-digit representation of a consumer's
creditworthiness, it provides a reference point for consumers to see how their
credit changes over time and how different actions impact their buying power.
Consumers need a comparative score to understand just how lenders are likely to
view them-no matter what scoring model is used.
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How
can I get my credit score?
Scores are not free from any credit bureau, but can be added to any credit report from Experian®,
Equifax®, or TransUnion®.
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What
do lenders consider a "good" score?
Credit scores range from 300 to 850. While different creditors have
different criteria for approving credit, a score over 700 is generally
considered by most lenders to be "good." Of course, the higher the
score, the better.
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How
can I improve my score?
Credit presents the positive and negative factors influencing your credit
in order of importance, making it easy to determine ways to improve your score.
Credit scores will also tell you where you rank among the rest of the U.S. population.
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How
many inquires will hurt my score?
When you request credit, the lender will pull a copy of your report resulting
in an inquiry. Multiple, frequent inquiries can negatively affect your score.
Inquiries generated by creditors considering whether or not to
solicit your business will appear on your report, but do not affect your score
in any way.
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Does
pulling my credit report hurt my score?
No. You can pull your own credit report as often as you wish without affecting
your credit score.
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How
often does my score change?
As information is updated by your lenders, your score will change. Therefore,
your score can vary from day to day; however, most scores do not change more
than a few points each month.
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HELPFUL LINKS
Better Business Bureau
www.bbb.org
Federal Citizen Information Center
www.pueblo.gsa.gov
Federal Trade Commission
www.ftc.gov
