Credit scores are based on information collected by credit bureaus and information reported each month by your creditors about the balances you owe and the timing of your payments. A credit score is a compilation of all this information converted into a number that helps a lender to determine the likelihood that you will repay the loan on schedule. The credit score is calculated by the credit bureau, not by the lender.
Grades ranging between 400 and 850 assigned to individuals based on their repayment history. Typically an individual will have three scores, one from each of the three major credit bureaus: Experian, Transunion, and Equifax.
A credit score summarizes your credit history into a number that lets lenders and others quickly know how responsible you have been with your past credit accounts and loans. Lenders use formulas to calculate your score based on information from your credit report. These scores help predict how likely you are to pay your loans or credit cards. While lenders each may use their own scoring models to determine how you rate, personal details such as race, gender, or religion are not considered when determining your score. Your credit score can change daily as your credit file is updated, so it is calculated at the time a lender requests your credit report and reflects your current credit standing. The information in your credit files at the different credit bureaus may vary, which means that your scores may be different for each bureau..
The major national repositories have data on every person who has/had credit cards and loans Everyone is scored depending on payment history, amount of outstanding debt and available credit. Scores determine commitment or not, loan product and rate.
Refers to the credit bureau rating system, usually denoted as FICO scores in the lending industry. The three credit bureaus grade current and prior credit history by evaluating payment history, type of credit established, total available credit, amount of credit in use, lack of credit, recent inquiries, and other major delinquencies such as bankruptcies, foreclosures, repossessions, collections, charge-offs, judgments, and tax liens. The evaluation of these factors results in a score that creditors use to determine whether or not they will extend credit to an applicant. Scores range from the 400s to the 800s and a higher score indicates less risk of default.
Each of the 3 credit bureaus (Equifax, Experian and Trans Union) will generate a "credit Score". Scores are representative of a borrowers credit and range from approximately 450 to 850. Most programs are score driven and qualification is usually based off of the middle score (eg. EFX – 560, EXP – 576, TU – 565, the Trans Union score of 565 would be the middle score)
The number generated by the credit bureaus which is a numerical representation of the subjects credit profile, range is from 450 on the low side to 900 being the highest score possible.