Credit Score Rating

A credit score is a mathematical calculation used to determine the likelihood of a person paying back any money he or she may have borrowed. The credit score is available from the 3 Major Credit Bureau consisting of Equifax, TransUnion and Experian.

Credit Report Rating

As the three credit bureaus have different evaluation systems that are based on different factors, the different credit bureaus may give different credit scores. So it is always better to get two or three credit scores, and not only one. The factors that determine the credit scores are payment history, current debts you’re facing, credit type mix, time length of credit history and the frequency of applications for a new credit. The credit score can be found out by ordering online credit reports which will be emailed directly to you in timely fashion. Online credit reports have all the information that a printed report has, but is available much quicker than a report sent by mail. This report can then be saved in the computer or printed for saving in a physical file. The credit reports show your credit report, and who reported it, the accounts you might have opened and about any inquiries being made abut the report. So by getting your credit score and report, you can know what your credit history is like, and if it requires any improvements.

In addition to the credit scores, most countries, including U.S. and Canada, also use a scale of 0-9 to rate your personal credit. Here each number is preceded by either “I” that signifies installment credit and “R” that stands for revolving credit. Accordingly, different financial institutions issue its own rating for individuals. This is because you may have a good rating with one company but have a bad rating with another company where you may have neglected your payments. As in credit scores, the larger the number in the scale, the higher is the risk you pose to the lender.