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Credit scoring is done
by accessing a person’s overall financial picture. A FICA score is a
combination, taken from the three credit services, Equifax, Experian and
Trans Union. This credit scoring is used by all lenders to determine how
much of a risk their potential borrower may be.
Your creditors and
lenders use the information on your various credit reports t see the
state of your finances. They use your credit history and your credit
scoring to determine if they want to do business with you. It is in your
best interest to know these numbers as well.
A bank uses an
arithmetic average credit score, by adding the score from all three of
your credit agencies, then dividing by three. Seeing as your dealing
with banks for most of your credit decisions, from opening new credit
cards to getting a mortgage, you can use their guide to credit scoring.
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