The United States is a credit society. Credit history is closely related to personal life. Whether the credit score is high or not directly affects whether you can successfully apply for a credit card, whether you can take out a loan to buy a car or a house, and the level of loan interest…even possibly Affects apartment renting and how future employers perceive you.
What is a high credit score in the US? How can I quickly improve my credit score? How to get rid of bad credit history? Friends, quickly accept Rain’s homework notes, a credit score of 800 is not a dream!
What is Credit Score?
There are three major credit reporting agencies or credit bureaus in the United States:
- Experian
- Equifax
- TransUnion
Banks, debt collectors, governments, and other institutions will actively report personal credit-related information, including credit card/credit account information, loan amount, repayment records, arrears records, etc., to the three major credit reporting agencies; The bureau will synthesize this information into a coherent credit report (credit report), and then calculate the credit score (credit score) through a certain internal formula.
In the future, banks and lending institutions will also use credit scores and credit reports to assess the creditworthiness of borrowers and use them to approve projects such as loans.
What about your credit report?
There will be detailed personal information on the credit report, including SSN social security number, birthday, employment status, address, etc.; there will also be detailed credit history records, including credit account opening/closing, credit card credit limit, and monthly balance, repayment payment records, as well as other types of loan information and repayment records; some credit-related public records, including debt, foreclosure, bankruptcy, etc.; various institutions will also check personal creditworthiness record of.
The three credit reporting agencies Experian, Equifax, and TransUnion operate independently, and the information collected and updated may not be the same, so it is best to check the credit reports of the three to compare the details. If you find inaccurate information on the report, you can contact the corresponding credit reporting agency to appeal for changes.
Credit score rating
The credit score in the United States is a relatively easy-to-understand standard for assessing personal credit, which is calculated by a certain formula based on the details of the credit reports issued by Experian, Equifax, and TransUnion. At present, the most commonly used in the United States is the FICO Score credit scoring model developed by the Fair Isaac Corporation (FICO for short).
I believe that many friends who have applied for credit cards or loans are familiar with FICO credit scores. 90% of major US banks and credit institutions use FICO scores as the evaluation criteria for personal credit scores. A common FICO score is between 300-and 850. The higher the score, the better the credit of the user and the lower the risk of approving a loan in the eyes of the credit institution. Therefore, those with high scores (usually 740 points or more are good) are more likely to get approved for credit cards or loans and can get lower interest rates and more discounts.
