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The credit scores are
worked out by the credit bureaus based on your credit
report. Various statistical scoring models are used to
calculate the credit score of an individual. They are
usually called as the FICO scores. These scores reflect
how credit worthy you are. It is extremely useful for
the lenders to study your credit history and judge your
credit stand. Credit score will be different for
different credit profiles. The score only looks at the
information present in the credit report. There are
other factors that are not considered for score
calculation but are looked into by lenders like your
income, religion, gender, nationality, the type of
credit applied for, etc. Credit scores are calculated
based on – payment history which covers payment
information on many accounts like credit cards, mortgage
loans and other installment payments; credit account
payments; the time period or the length of your credit
history; number of new accounts; outstanding debt; and
the types of credit accounts possessed by a person.
Timely payments and a good credit history with respect
to all credit accounts will enhance your score. |
