What your credit score really means
Comments
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peterradcliffe wrote: »Your credit score combines everything in your credit report into a tidy, three-digit number that serves as a gauge for lenders as to where your credit stands and serves to calculate risk at a point in time. It can determine whether you are approved for a credit card or a big loan such as a car or home, as well as how much you’ll pay for these things. While your score fluctuates depending on what’s happening in your financial life, the higher your score the better.
Credit scores range from 300 to 850. Good to excellent credit scores are typically 700 and above. When you're in this range, you are considered a low risk for defaulting on loans as well as scoring high on the responsibility chart. Fair credit means your score is between 660 and 700
Credit scores are used by lenders, including banks providing mortgage loans, credit card companies, and even car dealerships financing auto purchases, to make decisions about whether or not to offer your credit and what the terms of the offer (such as the interest rate or down payment) will be. There are many different types of credit scores. FICO® Scores* and scores by Vantage Score are two of the most common types of credit scores, but industry-specific scores also exist.
Utter drivel.
Different CRAs give their scores out of different ranges which on its own invalidates your claim as to what a particular score signifies, before we even start on the meaningfulness (or otherwise) of the score itself.0 -
peterradcliffe wrote: »Your credit score combines everything in your credit report into a tidy, three-digit number that serves as a gauge for lenders as to where your credit stands and serves to calculate risk at a point in time. It can determine whether you are approved for a credit card or a big loan such as a car or home, as well as how much you’ll pay for these things. While your score fluctuates depending on what’s happening in your financial life, the higher your score the better.
Credit scores range from 300 to 850. Good to excellent credit scores are typically 700 and above. When you're in this range, you are considered a low risk for defaulting on loans as well as scoring high on the responsibility chart. Fair credit means your score is between 660 and 700
Credit scores are used by lenders, including banks providing mortgage loans, credit card companies, and even car dealerships financing auto purchases, to make decisions about whether or not to offer your credit and what the terms of the offer (such as the interest rate or down payment) will be. There are many different types of credit scores. FICO® Scores* and scores by Vantage Score are two of the most common types of credit scores, but industry-specific scores also exist.
Since he's referring to American credit reference agencies and "auto purchases" I'm guessing he should be out enjoying the 4th July celebrations instead of posting on here. In the USA the credit scores do mean something; in the UK they are nothing more than a meaningless marketing gimmick, and have no bearing at all on someone's ability to obtain credit.0 -
Ebe_Scrooge wrote: »Since he's referring to American credit reference agencies and "auto purchases" I'm guessing he should be out enjoying the 4th July celebrations instead of posting on here. In the USA the credit scores do mean something; in the UK they are nothing more than a meaningless marketing gimmick, and have no bearing at all on someone's ability to obtain credit.
I agree that Mr Radcliffe should be out celebrating the 4th of July.0 -
I've been working on trying to get mine up for a while, but i'm using clearscore at the moment to track it, but it keeps showing 'placing too many applications' although I haven't applied for anything in like 2 years, I'm guessing its a fault in there system.0
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I've been working on trying to get mine up for a while, but i'm using clearscore at the moment to track it, but it keeps showing 'placing too many applications' although I haven't applied for anything in like 2 years, I'm guessing its a fault in there system.
Trying to get your what up?
I think you need pills for that, not a credit card...0 -
pumicefluff wrote: »A credit score is a statistical number that evaluates a consumer's creditworthiness and is based on credit history. A person's credit score ranges from 300 to 850, and the higher the score, the more financially trustworthy a person is considered to be.
It's really not and it really doesn't.
Did you not read ANYTHING in this thread?0 -
It's most likely a spammer making a few posts to try to get around blocks on various things. Post text is exact copy of third sentence of https://www.investopedia.com/terms/c/credit_score.asp#targetText=A%20person's%20credit%20score%20ranges,person%20is%20considered%20to%20be.It's really not and it really doesn't.
Easy enough to recognise and report such posts.0 -
Hello:
So in sum if I am reading this correctly:
Pay your bills on time, don't have defaults, don't have massive credit to utilization ratios and apply for things such as new credit/mortgages etc without concerning yourself with the credit score from any of the suppliers.
Whether you get accepted by X borrower doesn't mean you will get accepted by Y and neither borrower will possibly base this decision on your credit score?0 -
Graham1982 wrote: »Hello:
So in sum if I am reading this correctly:
Pay your bills on time, don't have defaults, don't have massive credit to utilization ratios and apply for things such as new credit/mortgages etc without concerning yourself with the credit score from any of the suppliers.
Whether you get accepted by X borrower doesn't mean you will get accepted by Y and neither borrower will possibly base this decision on your credit score?
You are basically correct.0 -
Graham1982 wrote: »Hello:
So in sum if I am reading this correctly:
Pay your bills on time, don't have defaults, don't have massive credit to utilization ratios and apply for things such as new credit/mortgages etc without concerning yourself with the credit score from any of the suppliers.
Whether you get accepted by X borrower doesn't mean you will get accepted by Y and neither borrower will possibly base this decision on your credit score?
If you’ve read it correctly then you’d have seen your scores bears no factor in lending decisions whatsoever0
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