Thursday, May 3, 2007

Explanation of Personal Credit Report Scores

A personal credit report score denotes the measurement of a person's credit risk. A number of different factors are taken into consideration when determining credit scores.

Three Different Credit Bureaus

    There are three different credit bureaus that are used to determine a person's credit score. These bureaus are Equifax, Experian and Trans Union.

Your Credit Score

    The number that is commonly used to denote a person's credit score is called the FICO-based credit report and represents an average of the scores provided by each of the three major credit bureaus.

Maximum and Minimum Credit Scores

    The maximum FICO-based credit score is 850, while the minimum personal credit score is 350.

What is a Good Personal Credit Score?

    Generally, any score above 630 is considered a good credit score. Any score between 630 and 500 is considered to be average. Any score below 500 is considered to be poor.

Knowing Your Credit Score

    A credit report can affect your ability to obtain loans and the interest rates on those loans. Every person is allowed one free credit report a year from each of the three major credit bureaus.

0 comments:

Post a Comment