Trans Union

If you intend to apply for a loan, you need to get your credit score. Understanding what this score means will allow you to make the loan process quick and easy. Let's face it, most people want the loan process as painless as possible. Obtaining and understanding your credit score will help you see potential problems and perhaps eliminate them before starting the loan process. There are three different credit bureaus from which you can get your credit score. These are Experian, Equifax and Trans Union. Each of these companies applies a different formula to calculate your credit score, although these formulas are weighted for scoring a company's score is equivalent to the same number of others. (A valuable related resource: Wells Fargo Bank). Because these three companies to coordinate their credit rating system by the company Fair Isaac, the credit score is known as a FICO score.

Loan companies in particular might look at your salary or job stability today, but the FICO score usually offers a good understanding of the credit status of a person. Your FICO score is based on your credit report, which is a combination of your current credit accounts and your credit history over time. The last two years is by far the most important part of your credit history. Usually, a bad place in your credit history will disappear once the twenty-four months, it closes the window. Your credit score can range from 375-900, but most of the scores are in the range of 600-700. 650 or more. This is considered the magic number, and if you score 650 or higher, then you have excellent credit.

If your credit score is 650 or higher, loans, should be relatively easy and interest rates should be to your liking. Between 620 and 650. This is where most people stand up and means you'll be able to get reasonable loans and interest rates, although the process might be a bit slower and you may have to answer some more questions. Below 620. This does not mean you can not get a loan. But it does mean the loan process will be longer, less pleasant and more conditions. The understanding of this on your credit score will help you prepare for obtaining a loan. If you find a discrepancy in a credit report, you need to address their concerns to the appropriate credit bureau. If you can give a reasonable explanation for the error or, better still, if you can provide documentation to counter the discrepancy, you may have changed your credit report. In general, the three credit bureaus do not make the same mistake and your FICO score is correct. I would suggest not asked about her score Credit too often, because each investigation is your credit history and the appearance of worry can affect your credit score. Finally, remember that the number of the FICO score is not important in itself. Each creditor shall credit rating cuts different, so a firm understanding of the guidelines score credit potential creditor will help you understand the real implications of your credit score. You can read more about credit issues and debt blog