Credit History
Your credit history consists of two elements: your credit report and your credit score. Know them!
Credit Report
The creditor's main purpose for reviewing your credit report is to help decide if they want to extend credit to you. Within this report you can expect to find personal information such as your name, current address, Social Security number, date of birth, phone number, and current and previous employers. Also credit information from your creditors such as date the account was opened, amount borrowed, credit limits, and payment history. And this report can also include public records like tax liens, bankruptcies and court awarded judgments against you. And this report will also include a listing of all parties that have requested a copy of your credit report.
Credit Score
Your credit score can be both your best friend as well as a thorn in your side. Your goal is to maintain a good credit score, as these scores are the additional consideration creditors use when they are deciding whether or not to extend a line of credit to you.
The credit scores generated by the credit bureaus are often referred to as "FICO" scores, and these scores range from 300 to 850 - the higher, the better.
Over the years, this three-digit scoring has emerged as a way to compare how the information on your credit report compares with each bureau's credit history on hundreds of thousands of other consumers. In a nutshell, the credit score generated informs creditors how likely you are to repay your debt.
Each credit bureau uses their own methods of calculating your credit score based on all of the criteria listed above. And yes, each credit bureau has multiple ways of calculating the same credit score.
Additionally, it's quite probable that at any given time, each credit bureau will report a different credit score for you. They all attempt to remain as current as possible, but the resulting score is only as accurate as the information that they have available on you can provide. This is why you should check in on your credit score from time to time. And www.AnnualCreditReport.com will issue one free copy of your credit report to you each year upon request.
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Credit Report
The creditor's main purpose for reviewing your credit report is to help decide if they want to extend credit to you. Within this report you can expect to find personal information such as your name, current address, Social Security number, date of birth, phone number, and current and previous employers. Also credit information from your creditors such as date the account was opened, amount borrowed, credit limits, and payment history. And this report can also include public records like tax liens, bankruptcies and court awarded judgments against you. And this report will also include a listing of all parties that have requested a copy of your credit report.
Credit Score
Your credit score can be both your best friend as well as a thorn in your side. Your goal is to maintain a good credit score, as these scores are the additional consideration creditors use when they are deciding whether or not to extend a line of credit to you.
The credit scores generated by the credit bureaus are often referred to as "FICO" scores, and these scores range from 300 to 850 - the higher, the better.
Over the years, this three-digit scoring has emerged as a way to compare how the information on your credit report compares with each bureau's credit history on hundreds of thousands of other consumers. In a nutshell, the credit score generated informs creditors how likely you are to repay your debt.
Each credit bureau uses their own methods of calculating your credit score based on all of the criteria listed above. And yes, each credit bureau has multiple ways of calculating the same credit score.
Additionally, it's quite probable that at any given time, each credit bureau will report a different credit score for you. They all attempt to remain as current as possible, but the resulting score is only as accurate as the information that they have available on you can provide. This is why you should check in on your credit score from time to time. And www.AnnualCreditReport.com will issue one free copy of your credit report to you each year upon request.
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posted by Bob Moser at
1:50 PM
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