A credit score, also known as a FICO score, is a numerical representation of an individual’s credit risk, to reflect the creditworthiness of that person. A credit score is calculated based on credit information usually sourced from three credit bureaus, Equifax, Experian and TransUnion. These credit bureaus compile and store information regarding credit-related behavior of individuals, and present this information in a standard format used by financial lenders. The scores are expressed as a range, with high marks being the highest and lowest marks representing the lowest possible scores. Credit scores can only be determined by analyzing the available credit data. Factors such as payment history, types of credit used and existing debt are not taken into account.
Credit scores are based upon many factors, which vary widely according to the individual. Some of the most prominent ones include the type of credit used, length of time for which it has been used and the number of accounts opened. Credit scores will be different for everyone, despite the fact that they are based upon the same criteria. People with bad credit histories will have lower credit scores than those who have good credit records.
In order to get approved for a home or auto loans, people nowadays often turn to companies that offer them instant approvals, without much hassle. One such company, Lending Tree, offers instant approvals on their website. Lending Tree is one of the largest providers of instant approval loan websites. You can use their site to get multiple quotes from several different lenders.
In order to determine your credit scores and compare them, you will need to determine the factors that are affecting them. These factors, when analyzed using information supplied by Lending Tree, will determine your potential lenders’ willingness to approve you for a loan term. Information available on the website includes the following: how long you have been paying bills on time; how long before you filed bankruptcy; what types of debt are included in your credit history; and other information pertaining to your financial history. Using this information, the lender will determine whether you are a good candidate for financing terms.
To further simplify the process of evaluating your credit scores, there are three separate credit bureau websites. Equifax, TransUnion and Experian each have their own websites where you can get your credit reports. Each of these websites provides different scores, but they all rely on the same underlying mathematical algorithms. These mathematical algorithms to determine your credit scores, which are then used to determine the interest rates you will be eligible for.
The formulas for calculating credit scores use a special kind of calculation called a finite difference method, also known as a FICO. A credit score, unlike a credit report or financial history, only becomes outdated in a few years after it is calculated using information from your credit history. If a lender used your credit scores at the time of your application, they will not have updated the numbers since then. In addition, your credit score will not change when you go through a bankruptcy or when you have a foreclosure on your credit history. Therefore, it can be several years before your credit scores change due to the actions involved with a certain type of loan. Therefore, in order for a lender to evaluate your application, they must use the same type of calculation for all three factors.
Because your credit scores are updated monthly, most of the consumer financial protection bureau websites have an online calculator that you can use to check your credit scores at any time. The calculator will require basic personal information, which will include name, address, date of birth, social security number, and current employer. Once you provide the information, it will take about ten seconds before the results are available. There is a section on the website entitled “calculating credit scores,” which states the three different score types. This will allow you to compare your scores from each of the three companies.
However, if you are interested in obtaining your free credit scores, you can always request them directly from the three consumer credit bureaus mentioned above. The federal law requires the credit scoring systems to give you one free copy of your score per year. However, you can only receive one free copy per year, regardless of whether or not you actually apply for credit. To apply for credit, you must contact the creditor. You are not allowed to apply for credit at any other time. The only way to obtain your free credit scores is through one of the three consumer credit bureaus in the United States.
