How is my Credit Score Calculated?
Your credit score is determined by an algorithm developed by the Fair Isaac Corporation (FICO). Three credit bureaus use this algorithm to report on consumers' personal financial histories. Those three companies are Equifax, Experian and TransUnion. While the exact formula used to calculate your credit score is a tightly guarded industry secret, these credit bureaus provide general guidelines about financial behavior that can affect your credit score. Items taken into consideration when determining your credit or FICO score include:
- Payment History
- Debt Ratio
- Credit History
- Inquiries into Credit
- Types of Credit
Your credit score may vary slightly from credit bureau to credit bureau, but there should never be a huge discrepancy between scores. Contact Fast Credit Repair Company if you find that your credit scores differ greatly between credit bureaus.