Different credit reporting bureaus use different credit scores.
The FICO® score, developed by the Fair Isaac Corporation (www.myfico.com), ranges from 300 to 850 and a higher score can yield a lower interest rate. According to Fair Isaac, the FICO® score is calculated based on your rating in five categories:
1. Payment history (35%)
2. Amounts owed (30%)
3. Length of credit history (15%)
4. New credit (10%)
5. Types of credit used (10%)
The VantageScore—developed jointly by Experian, TransUnion and Equifax—ranges from 501-990 with higher scores representing a lower likelihood of risk. The national average VantageScore is 736; in Illinois it's 747. According to VantageScore (www.vantagescore.com), its credit score uses information from account information (credit cards, auto loans, student loans and mortgages), public records (tax liens or bankruptcies), and inquiries (requests by lenders to view your credit) and is weighted as follows:
1. Payment history (32%)
2. Utilization (23%)
3. Balances (15%)
4. Depth of credit (13%)
5. Recent credit (10%)
6. Available credit (7%)
No comments:
Post a Comment