Business / Taxes / Credit Score: Your credit score is a number, calculated based on information in your credit report, that lenders use to assess the credit risk you pose and the interest rate they will offer you if they agree to lend you money. Most lenders use credit scores rather than credit reports since the scores reduce extensive, detailed information about your financial history to a single number. There are actually two competing credit scoring systems, FICO, which has been the standard, and VantageScore, which was developed by the three major credit bureaus. Their formulas give different weights to particular types of credit-related behavior, though both put the most emphasis on paying your bills on time. They also have different scoring systems, ranging from 300 to 850 for FICO to 501 to 999 for AdvantageScore. The best — or lowest — interest rates go to applicants with the highest scores. Because your credit score and credit report are based on the same information, it’s very unlikely that they will tell a different story. It’s smart to check your credit report at least once a year, which you can do for free at www.annualcreditreport.com or by calling 877-322-8228. It may be a good idea to review your score if you anticipate applying for a major loan, such as a mortgage, in the next six months to a year. That allows time to bring your score up if you fear it’s too low.
Credit Noun Synonyms: belief, faith, trust, credence
Credit Verb Synonyms: ascribe, acknowledge, attribute, assign, impute
Score Noun Synonyms: music, accompaniment, full or short or vocal score
Score Adjective Synonyms: nick, groove, scratch, line, mark, stroke, notch, cut, nock
Score Verb Synonyms: record, account, reckoning, register, tally, amount, number, count, sum, total, mark, grade
Business / Taxes / FICOÂ® Score: Created by the Fair Isaac Corporation, FICO® is the best-known credit scoring system in the US. Based on the information in your credit report, your FICO® score is calculated using complex, propriet MORE
Business / Real Estate / Credit Repository: Organizations that maintain and make available public credit history records, lenders use information from credit repositories to derive credit scores for potential borrowers. MORE