What is In Your Credit Score?
Chances are you know that your credit score report is highly important to you. The first thing you need to know is what is in your credit score. Your credit score contains a great deal of information and you may find it quite perplexing and overwhelming to try and decipher all of the information that it contains. It is in your best interest however, to learn how to read the report thoroughly so you understand all of the different areas that it contains and information that is used to discern a what your credit score is.
What is in your credit score in regards to personal information?
Personal information such as your name and Social Security number, current address, and previous addresses is going to be there.
What is your credit score in regards to credit information?
The report is going to contain information about any current loans or past loans that you have had. If there is any public record financial information such as liens that have been placed against you or if you have gone bankrupt, these will show. Or if there are any court judgments these most likely will appear on your credit rating as well.
What is your credit score in regards to inquiries?
Whenever you apply for credit it is often listed on your credit report that you have done so .That is if they have reviewed your credit report.
These are the basics of what your credit report will contain. It is important to break down the importance of these even further as it is this information along with other data that determines your actual credit score number.
What is your credit score is important to creditors as they look at various aspects of the report to help them decide whether they are going to make a loan to you are not. They will want to know if your bills a been paid on time, if you have been referred to a collection agency, of have you ever gone bankrupt.
They will also want to know how much debt you have and they will compare this to your credit limits. They will also determine the length of your credit history, and they will check to see if you have applied for credit in other places recently. They will also pay close attention to how many credit accounts that you may have.
You should also keep in mind when checking out what is your credit score that the information that is on this report can be kept on their for anywhere between 7 to 10 years.
There are three major credit bureaus that most creditors will rely on when doing credit checks. This is Equifax, Experian and TransUnion. They all basically gather the same information but they each have their own system that they use which is very complex to determine your credit score. Most times they follow a basic guideline to determine the calculations. Each of these companies do not disclose their exact methods.
Their focus is on your financial behaviour and in order to determine this they will take into account how often you are on time with your payments or how often you are late. They will also look at how much credit is still available on your current credit cards. They will also look at the age of the line of credit. Plus they will take into account how often you are applying for new credit. Then in addition to this, there may be other varying factors that they will rely on.
When you are determining what is your credit score and you have received your credit report it is most important that you check it for accuracy. Mistakes can be made and you need to get these corrected as quickly as possible.
You should also be aware that on a yearly basis you are entitled to a free copy of your credit report. Even if you are not considering seeking out credit at the current time it is highly important that you know what your credit score is now. So that you can take any steps immediately to correct it so that it will be in good shape for your future.