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1. Client Login +1 (800) 830-0488 Call Us Now HOME PRICINGS & SERVICES WORK WITH US CONTACT BECOME AN AFFILIATE BLOG More All Posts BASICS HOW TO.. Ben Anthoine / Yotis Tonnelier Mar 28 2 min read HOW TO MEASURE MY CREDIT SCORE How is my credit score calculated? There are approximately 220 million consumers with credit reports in the United States and approximately 36 billion pieces of credit data in total are recorded on credit reports every year to create credit scores. Who is behind the scene hero for this?? The calculations: When it comes to Credit score, the other thing that clicks in your mind is how do we calculate that? Your credit score is one of the most important measures of your creditworthiness. In USA there are credit bureaus to carry out this job. The major one is the FICO CREDIT SCORE. Your FICO score is a three digit number (usually ranging between 300 to 850). It is based on metrics developed by Fair Isaac Corporation. The higher your score is, the less risky you are to lenders. Also the credit score, often referred to as a FICO score, is a proprietary tool created by FICO (formerly the Fair Isaac Corporation created in 1956). FICO is actually not the only type of credit bureau but it is commonly use to measure your credit score by lenders to determine the risk involved in doing business with a you. Some other types of credit bureaus working for your credit score includes: Experian: 330 – 830 Equifax: 300 – 850 TransUnion: 300 – 850 VantageScore: 501 – 990 (often assigned a letter grade, A – F) What it takes to calculate your credit score? Payment history takes into account whether you have paid your credit accounts consistently and on time. It also looks at previous bankruptcies, collections, etc. It takes into consideration the size of these problems, the time it took to resolve them, and how long it has been since the problems appeared. The more problems you have in your credit history the lower your credit score will be and vice versa. Another major component is the amount you currently owe relative to the credit you have available. Credit score formulas assume that borrowers who continually spend up to or above their credit limit are potential risks. Lenders typically like to see credit utilization ratios below 20%. While this component of the credit score focuses on your current amount of debt, it also looks at the number of different accounts and the specific types of accounts you hold. A large amount of debt from many source will create an adverse effect on your score definitely. HOW TO.. 0 views HOME PRICINGS & SERVICES WORK WITH US CONTACT BECOME AN AFFILIATE BLOG More © 2020 by www.creditelites.com