Here’s how a credit score is supposed to work:
A credit score, according to the Web site of a company that sells them,
“is simply a number that represents the likelihood that you will repay
a debt as agreed. Credit scores are calculated using information from
your credit report at the moment it is requested by a lender.”
With a high credit score, you can line your wallet with plastic and use
the equity in your home to buy a new car, renovate the kitchen or take
that dream vacation.
Earn a low score by defaulting on a loan, paying your cards late or
filing for bankruptcy, and it’s cash on the barrelhead – no new cards
for you.
Read the article below for how it may be in the future. It talks about the FICO and VantageScore.
-Adam
Settling the scores (Stamford Advocate)
Stamford-based company gives FICO some competition A credit score, according to the Web site of a company that sells them, “is simply a number that represents the likelihood that you will repay a debt as agreed. Credit scores are calculated using information from your credit report at the moment it is requested by a lender.”
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