There's a relationship between your credit report and your credit score, but they are not the same thing.
Many people mistakenly believe that their credit score and credit report are the same thing. Even though the two are related, your credit score and report are distinct entities.
A three-digit number, your credit score indicates your likelihood of paying back debts on time. The details of your payment history and your credit standing are found in your credit report.
Exactly what Does One Mean by Credit Score?
Various credit scores have been assigned to you. Lenders typically use a score based on the Fair Isaac Corporation's FICO model. There are a wide variety of FICO scores available, some of which are tailored to specific industries (like the FICO Auto Score 9).
Lenders may also rely on a different credit score model, VantageScores, in addition to FICO. VantageScore 4.0 and 3.0 are the newest releases. Credit scores can be anywhere from 300 to 850, and that's the range used by both FICO and VantageScore.
Check out this list of the top travel rewards credit cards to learn more.
To determine your eligibility for a loan, creditors typically contact one or more credit reporting agencies and ask for your credit score. Your credit score is determined by an algorithm that analyzes the data in your credit report.
While both the FICO and VantageScore range from 300 to 850, the factors used to determine your score are weighted differently. If you read on, you'll understand what I'm getting at.
If you're just getting started with credit, it takes about six months of on-time payments to establish a good payment history and thus a high FICO score. VantageScore reduces the weight given to the length of time you've had credit accounts, so a score can be made in as little as two months.
Many people mistakenly believe that their credit score and credit report are the same thing. Even though the two are related, your credit score and report are distinct entities.
A three-digit number, your credit score indicates your likelihood of paying back debts on time. The details of your payment history and your credit standing are found in your credit report.
Exactly what Does One Mean by Credit Score?
Various credit scores have been assigned to you. Lenders typically use a score based on the Fair Isaac Corporation's FICO model. There are a wide variety of FICO scores available, some of which are tailored to specific industries (like the FICO Auto Score 9).
Lenders may also rely on a different credit score model, VantageScores, in addition to FICO. VantageScore 4.0 and 3.0 are the newest releases. Credit scores can be anywhere from 300 to 850, and that's the range used by both FICO and VantageScore.
Check out this list of the top travel rewards credit cards to learn more.
To determine your eligibility for a loan, creditors typically contact one or more credit reporting agencies and ask for your credit score. Your credit score is determined by an algorithm that analyzes the data in your credit report.
While both the FICO and VantageScore range from 300 to 850, the factors used to determine your score are weighted differently. If you read on, you'll understand what I'm getting at.
If you're just getting started with credit, it takes about six months of on-time payments to establish a good payment history and thus a high FICO score. VantageScore reduces the weight given to the length of time you've had credit accounts, so a score can be made in as little as two months.
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