WHAT DETERMINES YOUR SCORE?

The credit scoring system was developed to give potential creditors a model of your individual risk assessment for approving or denying a loan. This scoring system is currently used by every lending intuition in America. There are several parameters to your Exuifax, Experian and Trans Union that are used to determine what your unique score will be indexed by a three - digit number. The lowest is 350 and the highest is 850. Depending on what is reflected in your bureaus will determine the exact number you will achieve, the higher it is the better. This number that you will receive will place you somewhere into one of three main categories used by lenders. By removing negative or inaccurate items from you bureau this number will help you generate a higher score and could be the difference from being approved or denied.

BUREAUS AND THE SCORING SYSTEM:

Each credit bureau will then take this scoring system and make some little adjustments to the formula used to determine if they feel you will repay the loan. Understand that even though all the bureaus use the score system it does not mean you will have the same number on each bureau. Each bureau adopted the main principles of the scoring system and renamed by adding in a few calculations each bureau feels is more important to your credit situation. Equifax calls it the "Beacon" Scoring System, "Experian"calls it the Fair Isaac scoring system and "Trans Union" calls it the Empirica scoring system. In general when combined they call it your middle credit score.