Useful information and resources on acheiving a good credit score.
In the United States, a credit score is a number between about 300 and 850 (between 620 and 780 in 60% of cases) based on the statistical analysis of a person's credit report, to represent the creditworthiness of that person—the likelihood that the person will pay his or her debts. A credit score is primarily based on credit report information, typically from the three major credit bureaus.
A FICO score generally has a max of 850 and a minimum of 300.[citation needed] It exhibits a left-skewed distribution with a median around 723.[citation needed] The performance of the scores is monitored and the scores are periodically aligned so that a credit grantor normally does not need to be concerned about which score card was employed.
Each individual actually has three credit scores for any given scoring model because the three credit agencies have their own, independent databases. As these databases are independent of each other, they may contain entirely different data. Many lenders will check an applicant's score from each bureau and use the median score to determine the applicant's credit worthiness.
VantageScore ranges from 501 to 990 and offers letter grades as well: A (901-990), B (801-900), C (701-800), D (601-700), and F (501-600).
What makes up a credit score?
35% — punctuality of payment in the past (only includes payments later than 30 days past due)
30% — the amount of debt, expressed as the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)
15% — length of credit history
10% — types of credit used (installment, revolving, consumer finance)
10% — recent search for credit and/or amount of credit obtained recently
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