True Credit Scoring

One of the most important aspects of maintaining or repairing a damaged credit score is being able to find out what your true credit score is. It will be a huge influence in the type of finance that you are able to get, as well as the terms available to you from various establishments. In short, having a positive and fresh Number is crucial to being able to obtain fair and balanced financial deals for yourself.

What is a Credit Score?

Your credit rating acts as a barometer of the risk that a creditor is taking when they give you what you are asking for. Additionally, a lender will look at your report and can also purchase some details, including a Number that is based on the general information within the report. This information gives them an idea of what you are actually worth on a baseline rating. However, the issue is that not every report bought actually follows the regulation standard in America, known as FICO. FICO, or Fair Isaac & Company, supply the software that tends to be used for credit evaluations.





How Does FICO Work?

Your true credit score can be anything from 300-850, and the FICO score is a mathematical equation that will land you wherever on the barometer that you land. By then comparing your score with the average, they can determine whether or not you are going to be a risk to the lender and dictate the terms more freely. Because the score itself is used differently in each lending institution it’s hard to know if your Score is going to be suitable with one branch, and unsuitable with the next.

A real FICO number can be a very good thing to have on-hand as it lets you understand more regularly where you sit at the moment and, crucially, the reasons why your score isn’t higher. Whether or not you agree with the reasons, it’s something to work towards in the future so that you can get a better Rating in the future.

How Long Does Your True Credit Score Go Back?

Typically, any accounts up to six months old can be used in a credit report so it’s quite easy to get a semi-recent account of how you are looking at the moment from one of the many FICO regulators like TransUnion or Experian. Typically, you will notice a change to your FICO score on a month-to-month basis. Each of these three branches will have a different scoring for you, and they score you only on credit ratings within their side of the industry. This means that the information one has on you will be different to the next.

What Other Criteria Is Used?

However, your FICO score is not the only thing that makes up your Rating. Instead, you can also find that information from various other accounts can help make up the whole picturing including:

• Customer “risk” scores – how you have performed in the past with this company
• Other credit bureaus reports
• Lenders own credit score baselines
• Application risk scores

These are the most common criteria that will be used alongside the FICO score to give you a true credit rating. Having this knowledge makes it much easier to then go and improve your credit rating and work on the parts of your credit profile that aren’t strong enough. It may seem daunting at first, but once you know the true value of where you are, this becomes much easier.