Category: Credit Score

Credit Score

Know Your Credit Score – Simple Tutorial

Credit Score

What is a credit score?

A credit score is a credit report metric that reflects your level of credit risk, the higher your credit score number is the lower you are as a credit risk. Your credit score is generated through statistical models using elements from your credit report; however, your credit score is not physically stored as part of your credit history on the credit file. Rather, it is typically generated at the time a lender requests your credit report, and is then included with the report viewed by the creditors. Your credit score is a fluid number, and it changes as the elements in your credit report change. For example, payment updates or a new account could cause your credit score to fluctuate. There are many different credit scores used in the financial service industry. Your score may be different from lender to lender (or from car loan to mortgage loan), depending on the type of credit scoring model that was used.