![]() That’s right-we’re talking about your credit score. You live and breathe those three life-altering digits. You’ve had it for so long, it’s almost like a buddy. When purchasing a credit score for yourself, most experts recommend getting a FICO Score, as FICO Scores are used in 90% of lending decisions.You’ve been playing the game for years now. Other credit scores may evaluate your credit report differently than FICO Scores. While FICO Scores are used by 90% of top lenders, there are other credit scores made available to consumers. See how much FICO Scores change over time. ![]() Your credit scores from a month ago are probably not the same score a lender would get from the credit bureau today. Your credit scores will change over timeĪs the information in your credit report changes, so will any new credit score based on your credit report. Be sure to check your reports regularly or sign up for alerts to be notified when your score changes. These differences can cost you thousands over the life of a loan. Other times, the difference in your credit scores from each bureau can be vast due to an error or mistake in your credit report. Sometimes the difference is just a few points. ![]() What are the minimum requirements to have a FICO Score? Different scores at each credit bureauīecause each credit bureau could have different information on file about you, your credit scores will most likely differ for each of the three credit bureaus: Equifax, TransUnion and Experian. Generally, that means you must have at least one account that has been open for six months or longer, and at least one account that has been reported to the credit bureau within the last six months. The minimum required to calculate a credit scoreįor a credit score to be calculated, your credit report must contain enough information-and enough recent information-on which to base a credit score. When a credit score is calculated, the credit bureau will also provide up to five reasons that are most heavily influencing that particular score. There is no single "cutoff score" used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates. While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. consumers and clearly demonstrates to lenders that the borrower is an exceptionally low risk. This credit score is well above the average score of U.S. consumers and demonstrates to lenders that the borrower is very dependable. This credit score is above the average of U.S. consumers and most lenders consider this a good score. This credit score is near or slightly above the average of U.S. consumers, though many lenders will approve loans with this score. This credit score is below the average score of U.S. consumers and demonstrates to lenders that the borrower may be a risk. This credit score is well below the average score of U.S. A "good" credit score is considered to be in the 670-739 score range. ![]() The higher the score, the lower the risk to lenders. Most credit scores have a 300-850 score range. By comparing this information to the patterns in hundreds of thousands of past credit reports, FICO Scores estimate your level of future credit risk, or how likely you are to repay a loan on time. FICO Scores are calculated based only on information in a consumer's credit report maintained by the credit bureaus, Experian, Equifax and TransUnion. 90% of top lenders use FICO Scores to help them make billions of credit-related decisions every year. Learn the difference between credit scores and FICO Scores.Ībout FICO Scores The most widely used credit scores are FICO Scores, the credit scores created by Fair Isaac Corporation. It's important to understand that not every credit score offered for sale online is a FICO Score. It is a number that summarizes credit risk, based on a snapshot of a credit report at a particular point in time. A credit score helps lenders evaluate a credit report. When lenders order a credit report, they can also request a credit score that's based on the information in the report. When you apply for credit - whether for a credit card, an auto loan or a mortgage-lenders want to know what risk they'd take by loaning money. Credit scores influence the credit that's available to a person and the terms (interest rate, etc.) that lenders may offer. ![]()
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