Your Credit report score has been affecting your Credit History for years and you may not even know you have one or what it is. A credit score is a numerical number that is determined from a mathematical formula based on the information found in your Credit bureau report.

The formula is complex and looks at many things in your credit report to determine your score, like, how old your credit is, how you have paid your credit in the past and what standings your debts are currently at, how many debts you have, the number and age of inquires, how you utilize your credit, as well as what your balances are in relation to your credit limits.

Each one of these categories carries a percentage towards your total score. As you can see, there are many things that are reviewed in scoring your credit, and as these things, such as Credit Card balances, change constantly, so will your credit report scores. Therefore, your report scores are meant to be a snap shot or summary of your credit history at or on that particular date.

There are 3 major credit reporting bureaus, Equifax, TransUnion and Experion. These agencies each have a credit bureau on you as well as their own Credit Scoring system, and as these credit bureaus do not share information, your credit reports and your credit reporting scores may all be different.

So, now that you know what credit scores are; you are probably wondering how they affect you and why should you be concerned with them. The reason is that credit report scores are one of the major factors a lender will use in order to determine your credit worthiness. This scoring sum is used by lenders as an indicator of how likely you are to repay your loans. This is based on studies done by the credit bureaus where they have determined, based on your credit history, a direct correlation between your credit reporting scores and your chance of defaulting on your credit obligations. The higher the credit score is the lower the risk of Default, therefore, the lower the scoring the higher the rate of defaulting.

Credit reporting scores average around 700, with reporting scores ranging from 400 to 900. By understanding the factors in your credit history that affect your score you can be proactive in managing your credit bureau report, ensuring better loans and lower interest rates.

A wise consumer will stay on top of their credit reports and scoring. So before you apply for a loan or credit card, check out what your credit score is by obtaining your credit report online. Today you will find all the services available to assist you with this. You can get your totally free credit report along with your scores from all the major credit reporting agencies. You will also find excellent tools such as credit monitoring services to stay on top of your credit.

Let's find out what is affecting your credit report score..

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About The Author
Michael Anderson writes for http://www.goodcreditreport.info/ where you can find out more about good credit reports and other topics.



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