WHAT IS IT?
Your credit score tells lenders how risky it is to lend money to you based on factors in your credit report.
WHO DECIDES IT?
There are three credit bureaus- Experian, TransUnion and Equifax–that generate credit scores based on a model created by Fair Isaac Corp. (FICO). Each score should be within a few points of the others. If they’re not, it could be that one doesn’t have your most current financial information.
KEY DETERMINING FACTORS
Elements of your credit report determine your score, and those evolve, changing your score over time. The weight of a factor can vary by credit profile
TYPICAL WEIGHTING
Payment history 35%
Debt level 30%
Length of credit history 15%
New credit 10%
Number of different kinds of credit you use 10%
NATIONAL DISTRIBUTION OF FICO SCORES
Up to 499 2%
500-549 5%
550-599 8%
600-649 12%
650-699 15%
700-749 18%
750-799 27%
800+ 13%
56% of people believe that credit scores are biased and unfair.
KNOW YOUR CREDIT PICTURE
You are entitled to a free copy of your credit report every 12 months from annualcreditreport.com. You must buy your credit score from either:
Experian.com (888) 397-3742
TransUnion.com (800) 888-4213
Equifax.com (866) 493-9788
SOURCES: MyFico.com, Western Union Global Payment Services Money Mindset Index
J. MYSTKOWSKI/ TRIBUNE NEWSPAPERS
