Two Things You May Not Know About Your Credit Score

You no doubt know that you have a credit score and that this score in some way determines your ability to obtain a loan. But there may be some details about the score that you are not aware of which we will now discuss below.

First of all your credit score is not only one number but it is in fact three numbers. This is because there are three independent credit reporting agencies which all have a slightly different numbering system and also different there is to determine what your score is based on the history in your report. There are actually slightly differenting scales for all three companies some companies going to 800 points some 850 etc. and so your score will differ for these reasons.

Your credit score is a strong factor in your ability to get a loan but it is, in fact, not the only factor. Many creditors will look over the details of your report to determine what types of loans you have been able to pay off successfully in the past as well as to get a general impression of your income your debt and how soon you would be getting a loan for the services they are providing.

This is due auto dealerships for example realize that having a successful auto loan repayment and a library book which went to collections is not the same as having an auto loan go to collections and a library book paid in full. The type of debts which you are able to pay off successfully are considered in addition to your score as well as all the other factors discussed above.

Source by Tuesdaydee Hasson

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