Credit Scores

From credit bureaus to credit scores to payment history, credit and credit scores can be a confusing subject. The good news is that with a little information from Countrywide Credit and some research on your part, you’ll become credit knowledgeable in no time. So read on and learn all about the mysteries of credit scores.

What are Credit Bureaus

Credit bureaus – also called credit reporting companies – are the companies behind credit scores. The credit bureaus – Experian®, Equifax® and TransUnion® – gather and report information about people who use credit, meaning those who borrow money. That’s why people who need or use credit should learn what credit bureaus are reporting about them. Learn more about credit bureaus and find out how to access your credit report.

Understanding Credit Scores

A credit score is a rating for individuals who borrow money. The credit score is calculated using information in the credit report. Your credit score represents your creditworthiness, how responsible you are about borrowing and repaying money. A high credit score can help you get approved by more lenders. The higher your credit score, the less money you may have to pay in interest when you borrow, because you can usually get a lower rate. Understanding credit scores is an important part of your financial knowledge.

Understanding FICO® Scores

FICO scores are the most well-known example of a credit score. The name FICO comes from the creators of the FICO score, Fair Isaac Corporation. They designed the FICO score as a way of calculating and predicting a person’s likelihood to borrow and repay debts responsibly. The FICO score is calculated by looking at several components in an individual’s credit report and assigning a value to each component. You’ve may have heard the term used often, but now you’ll have a better understanding of FICO scores.