Credit scores, also known as “FICO scores” in the US and Canada, are calculated using software developed by a company called Fair Isaac Corporation (FICO). There are 3 credit reporting agencies – Experian, Equifax, and TransUnion – that use the FICO scoring system. Each credit reporting company will have a slightly different score for the same person because not all creditors or lenders report to all three reporting agencies and they might record the same information in different ways. So, you really need to know the scores from all three credit bureaus. Credit scores range from 300 to 850, where the higher the number reflects a better credit rating. Credit scores are calculated based on five categories of information. The most important category is a person’s payment history (35%). The next most important is the Amount owed to all creditors (30%), the length of credit history (15%), amount of new credit (10%), and the type of credit used
(10%). Other things that will impact a persons credit scores are inquiries, civil judgments, tax liens,
bankruptcies, collection accounts, foreclosures, repossessions, charge offs, and closed accounts. It is important to know that your credit report does not contain information related to income, checking or saving accounts, marital status, race, religion, medical history, political affiliation.
(10%). Other things that will impact a persons credit scores are inquiries, civil judgments, tax liens,
bankruptcies, collection accounts, foreclosures, repossessions, charge offs, and closed accounts. It is important to know that your credit report does not contain information related to income, checking or saving accounts, marital status, race, religion, medical history, political affiliation.
