Posted on: 22nd Jul, 2007 06:05 am
How is a "Credit Score" computed.
Hi hanth,
Credit scores are calculated by the credit bureaus. The bureaus go through your credit report and then determine the scores based on how you have been managing your debts all throughout.
The scores are calculated on the basis of methods known as the Scoring models. For instance, the FICO score is determined on the basis of the FICO Scoring model. similarly there are various other scores which are calculated by using diffrent scoring models.
Take Care
Credit scores are calculated by the credit bureaus. The bureaus go through your credit report and then determine the scores based on how you have been managing your debts all throughout.
The scores are calculated on the basis of methods known as the Scoring models. For instance, the FICO score is determined on the basis of the FICO Scoring model. similarly there are various other scores which are calculated by using diffrent scoring models.
Take Care
Credit score is computed after taking many factors into consideration such as:
Outstanding Debts
Types of credit in use
What is the average balance on debts?
Payment History
Credit History
Amount of new credit
Outstanding Debts
Types of credit in use
What is the average balance on debts?
Payment History
Credit History
Amount of new credit
This page explains how credit scores are determined, you should go through it - http://atg.wa.gov/askcolumn.aspx?&id=11934