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MANAGING CREDIT TUTORIALHow Do Creditors Evaluate Your Credit Report?When your creditor receives your credit report, it usually comes with a score. Additionally, many creditors have a method to take the information from your credit report and your credit application and translate that into their own numerical score. Credit scoring is the scientific process where a mathematical model determines a consumer's credit risk by comparing information about one consumer to the credit performance of many others with similar credit profiles. What Is a Good Score to Get? Scores normally fall between 500 and 850, but the great majority of scores are in the 600s and 700s. The higher the score, the less risk there is for the creditor, so a score of 750 may qualify you for a better rate than a score of 625. The math is simple: The higher the score, the better your credit rating. How a Score Breaks Down Your credit score from a credit bureau (also known as your FICO score) is based on five factors Here is how much each factor contributes to the overall score:
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| Jump to: | |||
| 1. | Introduction | 11. | Purchasing a Credit Report |
| 2. | Why You Need a Credit History? | 12. | How to Correct a Credit Rating |
| 3. | Consequences of Bad Credit | 13. | How Creditors Rate You |
| 4. | Glossary of Credit Terms | 14. | 4 Key Credit Tips |
| 5. | Credit - The First Step | 15. | 3 Things you Don't Want to Do |
| 6. | How Creditors Get Information | 16. | How to Spot Bad Credit |
| 7. | What Your Credit Report Says | 17. | How to Get on the Right Track |
| 8. | What's In Your Credit Report? | 18. | Your Credit - An Overview |
| 9. | Credit Report Exercise | 19. | If You're Denied Credit |
| 10. | Free Annual Credit Report | 20. | Consumer Protection Laws |
| 21. | Credit Review | ||
