Check Credit Score

On our website you will find information about your credit score and a list of the best sites for improving your credit. 

Credit scores play an important role in obtaining credit. Until recently it was not possible for consumers to get access to their credit score, nor learn what went into the scoring process. However, in 2000 California passed the California Civil Code, which gave mortgage applicants the right to see their credit score. As a result, the credit industry voluntarily provided consumers access to their credit scores. Soon after, recent FACTA amendments to the FCRA brought about additional rights to the consumer in gaining access to credit scores and how scores are factored.

The three major credit rating agencies (CRAs) announced a common scoring model in March of 2006 called the VantageScore. This model established a scoring range that differed from the older FICO score. If you want to learn more about VantageScore, go to: www.experian.com/products/vantagescore.html.

Here is a list of other sites that offer additional information about credit scoring…

• FTC guide: www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm  
• PRC Fact Sheet 6c on credit scoring: www.privacyrights.org/fs/fs6c-CreditScores.htm  
• Fair, Isacc and Co. (fico) web site: www.fairisaac.com  and  www.myfico.com  Often the credit score is called a ‘FICO’, the leading developer of the scoring methodology. 

What is a Credit Score
The creditworthiness of a person is measured by the credit score, which is a statistical analysis of one’s credit history. By creditworthiness, we mean the likelihood that a person will default on a loan. Credit history is predominantly based on the information captured by one or more of the three major credit bureaus (Experian, Equifax, TransUnion).

Credit scores are calculated several ways, FICO being the most popular. FICO was originally known as Fair Isaac Corporation. Each credit bureau has its own formula. Experian uses PlusScore; Equifax uses ScorePower; and TransUnion uses VantageScore.

If you wish to obtain your credit score, it can be obtained from the credit bureaus or Fair Isaac for a small fee, or through subscription to any of the credit monitoring services online.

Your credit score will influence lenders in the following ways:

• To determine whether a loan will be granted  
• To determine whether credit cards will be issued  
• To determine the interest rate of a loan  
• To determine the credit limit of a loan or credit card  

Your credit score is not just used by banks. Other companies rely on credit scores: insurance companies; government agencies; mobile phone companies; employers; landlords; etc..

How Credit Score is Calculated
The credit score number ranges from 300 to 850. The higher the number the better. While the formula is proprietary, the following gives a general idea of how the score is calculated.

• 35 percent of the score is based on your credit history. It is determined by how many bills have been paid late, how many have been sent to a collection agency, and if there are any bankruptcies. The more current the bad history, the lower the score.  
• 30 percent is based on any current debt. Car loans, mortgages, personal loans, etc.. The number of credit cards and their credit limits will also influence the score. The rule is: keep your card balances at 25 percent or less of their limits.  
• 15 percent is based on the length time you have credit. The longer your credit history, the better. This is because the longer your credit history, the more predictive your future credit actions.  
• 10 percent is based on new credit. Opening new credit accounts will negatively impact on your score.  
• 10 percent is based on the types of credit you currently have. Your score will improve if the types of credit vary: installment loans, revolving credit, equity lines, etc..