What is a free credit score check?
Your credit score check provides a snapshot of risk that banks and other institutions use to help make lending decisions. the FICO Company collects data and and calculates statistically, with information from a consumer's credit files.
This information is then sold to banks and other companies by the FICO company. The FICO system is the only one that matters since all the major lenders look at it. Equifax only uses FICO.
FICO scores range from 300 to 850.
Equifax system goes to 900
For the FICO System
Elite is 740 and up
Prime - 700-739
Preferred - 660-699
Standard - 625-659
Sub-prime - 624-and under
Below are factors which affects your credit score,
1. Late payments, delinquencies, bankruptcies:
2. Outstanding debt: The more debt someone has the greater the risk of inability to pay outstanding debt
3. Length of credit history: A short track record makes it harder for a lender to assess creditworthiness
4. New applications for credit (inquiries): Frequent credit checks by lenders may indicate that a borrower is looking to increase his or her amount of debt.
5. Types of credit in use: Some types of credit, including credit cards, provide you with a credit line greater than the amount you have already borrowed. The more credit available, the greater the risk to the lender since a borrower can easily increase their outstanding debt.
Credit scores are based on the last 24 months of activity and they can change depending on information submitted to your creditors
Below are some links for more information on credit scores