Credit Education

I want...
Find Your Loan

Credit scores come from three different bureaus, which lenders use to view your credit history:

Your Fico Score (Trans Union)
Your Beacon Score (Equifax)
Your Isaac Score (Experian)

Each credit bureau calculates your credit score independently, using their own unique software. Furthermore, your score may vary depending on the reason you are checking your credit at that time. If you are buying a car, your credit score may be different than when you are seeking a mortgage, applying for a credit card, or getting your "free credit report," and so on. When it comes to credit, your history is vital to your future. Each and every decision you have made and will make will have a noticeable and definite effect on your ability to acquire financing and borrow money in the future. Since credit plays such a critical part in your life, it would behoove you to spend some time learning how to maintain and/or improve your score. These two aspects are where you should begin your education:

When it comes to getting a loan, who you are on paper is who you are period in the eyes of a lender. The higher your credit score, the less riskier the investment. And ultimately, that's what lenders are all about: minimizing risk. Thus, if you want to improve your chances of being seen as a "safe bet" to a lender and convince them that you will repay your borrowed funds in a timely manner, you must maintain a solid FICO® score. This score will determine what your interest rate will be, and if you get a loan in the first place.

Elements of Your Score
Before you can improve your score, you must understand what exactly makes up your score.

Are There Any Benefits to Being Reduced to a Number?
There are a few reasons why a quick, objective measurement of your credit worthiness could be a benefit to you.

Improving Your Score
Once you understand what determines your credit score, you can begin to bolster your chances of securing a loan on the best possible terms.

Myth v. Fact
Learn the truth and common misunderstandings about credit scoring.

Credit Analyzer
You may be surprised to learn the a huge number of credit reports actually contain errors which negatively affect your score, and thus your ability to secure financing. Credit Analyzer offers 4 distinct services that you might want to consider.

As mentioned before, the three credit bureaus - Equifax, Experian and TransUnion - each acquires and maintains their information independently; so the data they have on you may vary between them.

What Makes Up Your Credit Report
Once again, not all the data contained in your credit report is used to determine your credit score, and thus credit worthiness. Furthermore, some of the data may be inaccurate.

How to Review Your Report
As mentioned before, at least every year you should attain and go over your credit report in detail. You should obtain a copy from each credit bureau, especially before considering a major purchase.

Some Fairly Recent Credit Statistics
We now have a good amount of data about credit activity in the United States.

Credit Inquiries
What's a credit inquiry, and how does it affect your score? Do frequent inquiries really negatively affect my score?