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Credit Analysis
National Debt Crisis Center is a non-profit credit counseling agency dedicated to educating individuals about credit management and promoting financial literacy. This section of our Credit Management Series explains what credit score is, how to get your credit score and how to analyze your credit score.
What Is A Credit Score?
A credit score is a formula that creditors use to predict the “risk”
factor of providing credit to an individual. Creditors will analyze your credit reports, reviewing your payment
history, current outstanding debts, length of credit history, new credit applications and current credit usage.
There are many different types of credit scores depending on the type of credit you are applying for. Credit scores developed by
Fair, Isaac and Company are referred to as FICO scores. Below is an example of credit score factors in FICO scores:
Credit Score Factors
As you can see, paying your bills on time and keeping a moderate level of outstanding debts is important to obtaining a good credit score.
How To Get Your Credit Score
Many credit reporting agencies advertise free credit reports, which detail your credit history with one or more credit reporting bureaus. You can also receive (within 60 days of notification) a free credit report if you apply for credit and are denied. Unfortunately, these free credit reports don’t often include your credit score and are only a record of your credit history. Most credit reporting agencies will only provide your credit score for an additional charge.
How To Analyze Your Credit Score
The higher your FICO score, the better your credit. FICO scores below 539 are considered very poor credit. FICO scores between 540 to 589 indicate poor credit. FICO scores between 590 to 669 signify fair credit. FICO scores between 670 to 729 denote good credit. Individuals with FICO scores over 730 are considered to have very good credit.
Now that you know how good/bad your credit score is, where do you go from here?
Visit our credit management section on how to improve your credit
| Join National Debt Crisis Center, Inc. in making a difference! Contact us online or call us at 1-800-334-6797 for more information on our services. Our counselors can refer you to the debt management solution that best suits you and are available: Monday through Thursday 8:00 a.m. to 12:00 midnight; Friday 8:00 a.m. to 11:30 p.m.; Saturday 10:00 a.m. to 6:00 p.m. Eastern Time. Use the Credit Card Debt Analyzer to calculate your estimated interest and payment savings available, through a debt management program that matches your situation. |
