UNDERSTANDING CREDIT SCORES
Posted by Earl Sanders on
UNDERSTANDING CREDIT SCORES
Creditors want to loan you money for a Home, Car, Furniture, Personal Line of Credit etc…
But they also want to minimize their own risk. The easiest way to mitigate risk is by using your credit scores to make lending decisions.
Credit scores are compiled separately by three consumer reporting agencies -- Equifax, Experian, and Trans Union. These credit reporting bureaus calculate scores differently, and base their scores on information that may differ from other bureaus.
You may have also heard of the term “FICO”. FICO is a software company based in San Jose, California and founded by Bill Fair and Earl Isaac in 1956. Its FICO Score, a measure of consumer credit risk, has become a fixture of consumer lending in the…
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