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Credit Rating Score

A credit rating score is the number assigned to you on your credit report. FICO provides a credit rating score for many types of credit reports. A bank can use your credit rating score as an indicator of where you stand in relation to others when they are considering lending you money. It is very important for you to understand that paying your bills on time is essential to maintaining a good credit rating score. Your credit rating score can affect whether or not you get a loan for a house or even your insurance rates. Make sure that credit agencies have the correct information about you.

Sometimes consumers are perplexed with how credit agencies come up with their credit rating and credit score. The FTC is trying to make it to where consumers have a right to see their credit score at any time "in a context that is useful and meaningful to consumers."

Testimony recently provided by the FTC noted that the term "credit score" may have multiple meanings. "It is important for consumers to understand that they have not been simply assigned one, universal credit score' based on information contained in their credit report," the testimony states. "[I]ndividual creditors do not necessarily rely upon the same credit score to make their individual credit decisions." Credit scores are sometimes based only on information in a credit report, and sometimes based on additional information, such as credit application data. The testimony also indicated that credit scores may be used not only to determine whether a consumer qualifies for a particular product, but also to assess what price a consumer will pay for the loan - a practice commonly known as risk-based pricing.

To find out your credit rating score visit our home page and request a free credit report. Find out exactly what your credit report can do for you and how you can stay on top of your credit rating score.