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A credit score scale is
based on current financial trends. A bank uses an arithmetic average
credit score, by adding the score from all three credit agencies,
Experian, Equifax and Trans Union, then dividing by three. The credit
score scale shows just where a person’s numbers should fall given the
debt they are carrying.
Your creditors and
lenders use the information on your various credit reports to determine
the state of your finances and how much of a risk you might be to them.
They use your credit history and your credit score to determine if they
want to do business with you. They have determined much of their opinion
from judging off of a credit score scale.
It’s good to keep
informed. Why not know what everyone else knows about our finances?
Whether you are applying for a mortgage, buying a car or simply looking
into your FICA rating, making calculations based on your credit score
scale is the smartest way to answer tough financial questions. |
