- What is a credit score?
- Is there just one credit score?
- Is a credit score part of your credit report?
- What is a good credit score?
- How do I find out what is affecting my credit score?
- How do I get a perfect credit score?
- Will requesting my own credit report hurt my VantageScore?
- Do other inquiries hurt my VantageScore?
What is a credit score?
A credit score is simply a number that represents the likelihood that you will repay a debt as agreed. Credit scores are calculated using information from your credit report at the moment it is requested by a lender.
Is there just one credit score?
One of the most common myths about credit scores is that there is only one credit score. Web sites or financial advisors who claim there is only one “real” credit score are either misinformed or are being misleading. In fact, there are many different credit scores used by lenders – some estimate more than 1,000 – although some scores are used more predominantly than others.
While there are many credit scores on the market, VantageScore is the first credit score developed jointly by Experian and the other national credit reporting companies: TransUnion and Equifax.
Is a credit score part of your credit report?
Credit scores are not part of your credit report. Credit scoring is a separate process used by lenders to analyze the information in your credit report at the moment it is requested. Some credit scores are calculated by the credit bureau as the report is sent to the lender. These are commonly called credit bureau scores. Other types of credit scores may be calculated after the lender receives your credit report or may be calculated by a third party as a service to the lender.
What is a good credit score?
Your lender is best able to answer this question based on its criteria. There are many different credit scoring systems with different numeric scales. Each lender determines what a good score is based on its experience and the credit scoring system it is using.
However, you can get a very good idea of whether you will have good credit scores overall – even if the numbers are very different – by getting your VantageScore and VantageScore report.
The VantageScore was designed with you in mind. The VantageScore scale approximates the familiar academic grading scale (A, B, C, D, F), giving you immediate insight into whether you are a good credit risk, poor credit risk, or somewhere in between. In general, if you have a good VantageScore, most other credit scores will be “good,” as well, even if the scoring scale is not the same.
How do I find out what is affecting my credit score?
In order to find out what is affecting your credit score, you have to know what information in your credit report most affected it. That information is provided in the risk factor statements. Up to 5 risk factor statements are delivered with a credit score. These statements are generated every time a credit score is calculated, and the order they are delivered in is based on which risk factor had the most impact to your credit score.
In order to find out what is affecting your credit score, you have to know what information in your credit report most affected it. That information is provided in the risk factor statements. Up to 5 risk factor statements are delivered with a credit score. These statements are generated every time a credit score is calculated, and the order they are delivered in is based on which risk factor had the most impact to your credit score.
By comparing the risk factor statements to your credit report, you can identify the areas that most affect your credit history over time. There are more than 150 possible risk factor statements for VantageScore.
A VantageScore report provides your personal VantageScore, as well as a thorough description of the risk factors most affecting your score, empowering you to take action to improve your credit score.
How do I get a perfect credit score?
It is highly unlikely that you will be able to get a “perfect” credit score. If you have credit, there is always some risk that you will not be able to repay as agreed. As a result, credit scores will almost always reflect that risk, even if it is very small, meaning you won’t have a “perfect” credit score.
But you don’t need to worry about getting a perfect credit score. Your credit score reflects the odds that you will default on a credit agreement. Lenders don’t look for “perfect” scores. Instead, they look for scores that indicate an acceptable level of risk for their business. If your credit score is at that level or better, the lender will normally approve your application or offer you the best terms.
The best way to understand your VantageScore is to purchase a VantageScore report . The report includes a detailed description of the factors from your credit history that have the most impact on the score.
Will requesting my own credit report hurt my VantageScore?
Requesting your credit report will not affect your VantageScore or any other credit scores. An inquiry is added to your credit history every time a copy of your credit report is requested. However, inquiries that result from your personal request are not provided to lenders and are not viewed by credit scores. They are shown only to you on your personal credit report.
Do other inquiries hurt my VantageScore?
Inquiries are simply a record that someone has accessed your credit report. There are two types of inquiries. The first is the result of your application for a loan or other services. Because these inquiries can represent new debt that is not yet reflected as an account on your credit report, they can affect credit scores.
However, inquiries have a relatively small impact on your credit score. If you have a strong credit history, they may have no impact at all. Inquiries are rarely, if ever, the only reason for poor credit scores.
The second kind of inquiry includes your request for your own credit report, inquiries for employment purposes, account reviews by your existing creditors, and reviewing your credit report to make preapproved credit offers. Because these inquiries do not represent new debts or, in the case of preapproved credit offers, you did not initiate the inquiry, they do not affect your VantageScore. These inquiries are shown only to you when you request a personal copy of your credit report and are not provided to others.
