What can be done with Credit Scores?

A credit score is a number that is used to determine how reliable and or dependable a person is. A credit report is different from a credit score. A credit report shows information such as bankruptcies, closed accounts and open accounts.

Credit score ranges vary. They may be from 150-950, and they determine if it the person will pay their bills on time or if they will be late with payments.

There are different things that can and will affect your credit score. Things that affect credit scores are payments that are made on time, the number of open, closed, and or derogatory accounts, as well as how much credit is or was used.

When it comes to credit scores, there are different models that are used to determine the score. The two main models that are used to determine where your credit range falls are known as the FICO and Vantage models. The credit range categories are measured by excellent credit,good credit, fair credit, poor credit and bad credit.

There are three national credit bureaus. These bureaus are Equifax, TransUnion, and Experian. Every individual is entitled to receive a free copy of their report from these three agencies once every year.

The score range for Equifax is 300-850. The score range for TransUnion is 300-850. The score range for Experian is 300-850.

While the general categories for credit scores are, excellent, good, fair, and bad, each lender has their own standards for what they consider to excellent, good, fair, and poor scores.

Those with ” excellent” credit tend to have lower interest rates and they can get easily approved for many things ranging from loans to mortgages. Those with “fair” credit can sometimes have difficulties getting approved for loans. Those with “poor and or bad” credit have an extremely hard time getting approved for anything.

The biggest tip to improving your credit score is to never use more than half of your available credit.