How Companies Use Your Credit Score

Posted by: Allie P. | Dec 30,2007

Understand how companies use your credit score to appreciate how important that little three digit number is to your life. What you need to know about how your credit score is used:

 

• Not all companies use your credit score in the same way. There is more than one provider of credit scores, and each provider calculates them differently. In addition, lenders, insurance companies and credit card issuers all have their own methods for using credit scores.
• If you have a good, very good or excellent credit score when you order and review your credit report, chances are your credit will still look good no matter who reviews your credit history.
• Theoretically, if your credit is borderline, with some late payments, maybe a little too much credit or one too many credit cards, there’s some possibility that one company could view your credit history as being good and one company could view your credit history as being bad. However, this seems to be an unusual occurrence and is unlikely to happen.    
• If you order your credit report and credit score and find that your credit is poor, and you have several negative items in your credit history (items in collections or charged-off debts), then your credit history may negatively impact your ability to get a credit card or a loan, get the best deal on loan or credit card interest rates or, you may be denied for insurance.

 

Learn more about your credit score.

Sponsored Resources Ads by Google