There is a lot of discussion about credit reports and ratings, but exactly what is a bad credit score? Why do some people constantly get turned down for loans while others, who don’t have any more money, are instantly approved with no trouble?
Credit ratings are an important part of everybody’s life these days. Even if you don’t want a loan, your credit score can affect your application for credit cards, apartment leases, and even some jobs. It can also affect anything that involves you committing to monthly payments – auto financing, some insurance schemes, even having a phone hooked up in your house.
FICO or Fair Isaac Corporation is the best known credit score calculator in the USA. The exact mathematical formula or algorithm of the FICO credit calculation is very complex, but it is based on all the financial information they can get about you. This includes your credit history, loan and mortgage applications, missed payments if any, and many other details.
Read the rest of this entry
