Credit Scores

Credit scores are best understood as a statistical comparison of how one individual or company compares to other individuals or companies. In general, over time, those with higher credit scores tend to be more credit worthy than those with lower credit scores.

Credit scores are widely used by mortgage lenders and other lenders in evaluating loan applications. Credit scores are available as an add-on feature of the report for a fee. Obtaining a free credit report or buying a credit score has some disadvantages relative to alternative ways to obtain your report or score.

Credit scores are designed to help lenders know if you represent a risk when they lend you money. Credit scores are not intended for use in making hiring decisions. Credit scores have speeded up the process of making loan decisions, and have largely eliminated personal bias and subjectivity in the decision process. The major downside is the possibility of data error. Credit scores are fluid numbers that change as the elements in your credit report change. Stay up-to-date with your credit and get unlimited access to your Experian credit report and score with Credit Manager .

Credit scores are the equivalent of a financial report card. There is no way to avoid having credit scores since the Big Three consumer reporting agencies – Equifax, Trans Union, and Experian – keep tabs on your credit situation daily. Credit Scores & Credit Reports provides the first thorough examination of the all-important, but little understood, credit scoring and credit reporting systems. The Third Edition of this highly-acclaimed book enables consumers to understand how both of these systems actually work, and what they can do to improve their FICO scores, and to ensure their credit reports are accurate. Credit scores help lenders assess risk more fairly because they are consistent and objective. Consumers also benefit from this method.

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