Credit Score FAQs

What is a credit score?

A credit score is a composite that indicates how likely you are to pay on a loan or credit card as agreed. It provides a valuable guide to future risk based solely on credit report data. It is widely used by credit grantors when your credit application is evaluated. Your credit score may be based solely on information in your credit report.

How is the credit score calculated?

To calculate a score, numerical weights are placed on different aspects of your credit report and a mathematical formula is used to arrive at a final credit score.

FICO scores five main kinds of credit information. Listed from most important to least important, these are:

• Payment History
• Amount owed
• Length of credit history
• New credit
• Types of credit in use

Why do lenders use credit scores?

The use of credit scores has dramatically increased the speed at which many credit decisions can be made. Especially for consumers with relatively good credit, approvals for loans can be given in a fraction of the time previously required, without any manual review of the information. Credit scores also provide an objective estimate of how likely you are to repay on time and according to terms.

How often does the score change?

Your credit file is continually updated with new information from your creditors. The credit score is calculated based on the latest "snapshot" of information contained in your credit report at the time the score is requested. So your credit score from a month ago is probably not the same score a lender would get from the credit reporting agency today. Fluctuations of a few points from month to month are quite common.

How can I improve my FICO score?

Your FICO score analysis will suggest things you can do to improve your score overtime. Generally, people with high scores consistently:

• Pay bills on time
• Keep balances low on credit cards and other revolving credit products
• Apply for and open new credit accounts only as needed
• Regularly check credit reports.

Does every consumer have a credit score?

No. There are certain situations where a credit score cannot be calculated because one or more of the following has occurred:

• Your credit report does not contain at least one account
• A remark on one of your accounts references a person who is deceased
• The Social Security number on your credit report matches a Social Security number in the Social Security Administration's Death Claim Index

How do inquiries impact a credit score?

An inquiry is recorded on your credit report every time you, one of your creditors, or a potential creditor obtains a copy of your credit report. Inquiries, however, have less importance than delinquencies, balances owed, and the length of time you have used credit.

Who can order?

Any individual over the age of 18 who has a valid Social Security Number and resides within the United States.

Will requesting my credit report and/or score hurt my credit?

NO. When a consumer requests his or her credit report, it is considered a consumer disclosure and does not affect any FICO scores and is not recorded as an inquiry that can be viewed by future creditors.

Is requesting my reports online safe?

Yes. The process of submitting your information to us is encrypted using SSL technology.

What is in my credit report?

There are four primary categories of information contained in each type of credit report:

• Identifying information: Your name, current and previous addresses, social security number, telephone number, date of birth, current and previous employers.

• Credit history: Your history of paying bills with credit grantors such as retail stores, banks, finance companies, and mortgage companies.

• Public records: Items that may affect your creditworthiness, such as tax liens, court judgments (including child support judgments), and bankruptcies.

• Inquiries: Lists identifying the credit grantors and other authorized parties who have received your credit report. Inquiries also contain lists of the companies that receive your name and address information for the purpose of offering you credit.

Who makes the decision to give credit?

Creditors make credit decisions. Each creditor has their own formula for evaluating a credit application, and only the creditor can tell you why they made a decision. Credit bureaus do not grant or deny credit.