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                           What Is Your Credit Score and How Is It
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        Login Here         Credit scoring is a scientific  
                           method that uses statistical

 Tools                     models to assess an individual's
                           credit worthiness based on their credit history
 · Monitoring Service      and current credit accounts. Credit scoring was
 · 3 Bureau Online Report  first developed in the 1950s, but has come into
 · Credit Analyzer         increasing use in the last two decades.
 · FAQ
                           In the early 1980s the three major credit
 Resources                 bureaus, Experian, Equifax and Trans Union all
 · Mortgage Center         worked with the Fair, Isaac company to develop
 · Auto Loan Center        generic scoring models that allow each bureau
 · Insurance Center        to offer a score based solely on the contents
                           of the credit bureau's data about an
 · Planning Center         individual. Creditors-especially those in the
 · Yahoo! Visa             mortgage industry-frequently use the scores
                           when deciding who receives loans. They can
                           order your score, commonly called a FICO score,
                           from one of the bureaus, but it only draws upon
                           information from your credit report. Individual
                           creditors often also consider other
                           information, such as your salary or how long
                           you have been employed at the same company when
                           making loan decisions.

                           Each credit bureau has its own unique system
                           for compiling credit scores. However, the
                           scoring models have been normalized so that a
                           numerical score at one bureau is the equivalent
                           of the same numerical score at another. Thus, a
                           score of 700 from Equifax indicates the same
                           creditworthiness as a score of 700 from Trans
                           Union or Experian, even though the calculations
                           used to determine those scores are different at
                           each bureau.

                           A computer-generated score is compiled using
                           information from an individual's credit report,
                           such as how much money is owed and whether
                           payments have been made on time. Then that
                           score is compared to the credit performance of
                           consumers with similar profiles. The scoring
                           system awards points for each factor that helps
                           predict who is most likely to repay a debt. A
                           total number of points-a credit score--helps
                           predict how likely it is that you will repay a
                           loan and make payments on time.

                           Credit scores range from 375 to 900 points, but
                           those numbers mean little on their own. They
                           become meaningful and useful within the context
                           of a particular lender's own cutoff points and
                           underwriting guidelines.

                           In general, you are likely to be considered a
                           better credit risk if your FICO score is high.
                           Under mortgage lending guidelines, for example,
                           a score of 650 or above indicates a very good
                           credit history. People with these scores will
                           usually find obtaining credit quick and easy,
                           and will have a good chance to get it on
                           favorable terms.

                           Scores between 620 and 650 (average FICO scores
                           fall into this range) indicate basically good
                           credit, but also suggest to lenders that they
                           should look at the potential borrower to assess
                           any particular credit risks before extending a
                           large loan or high credit limit. People with
                           scores in this range have a good chance at
                           obtaining credit at a good rate, but may have
                           to provide additional documentation and
                           explanations to the lender before a large loan
                           is approved. This means that their loan closing
                           may take longer, making their experience more
                           like that of borrowers in the days before
                           credit scoring, when every individual was
                           researched.

                           A score below 620 may prevent a borrower from
                           getting the best interest rates, as they may be
                           considered a greater credit risk-but it does
                           not mean that they can't get credit. The
                           process will probably be lengthier and, as
                           noted, the terms may be less appealing, but
                           often credit can still be obtained.

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