So many people today are just curious about how the fico score is getting calculated. The exact formulae to calculate the score Is involved with quite complicated calculations. Anyhow online credit score estimator will help you to know how this score is obtained.
You can estimate your credit score with just a copy of your credit report. Wondering? Yes everything you need to estimate your credit score is there in your credit score copy.
According to the credit card act all people are allowed to get one free credit card report every year. You can get credit report from Experian, TransUnion and Equifax. All 3 credit agencies offer you one copy each.
Once you get these reports you can proceed to use credit score calculator to decide on your FICO score. When using the credit score estimator you need to provide more accurate information. It’s crucial to get more accurate results.
By based on the information you have provided in the credit score estimator will return the credit rating. Even though this result is not very accurate, this estimation score and your fico score will fall in the same range.
This estimation report cannot be used as a financial a report to submit your bank or your creditor. But you can use this report for your personal use. Credit score estimator helps individual to know about their credit worthiness. All 3 credit score agencies calculate credit score in the similar way as the credit score estimator. The reason for the differentiation found in all 3 credit score number is these all using different variables. While you have 650 credit score in Experian, your Trans union credit score may be 660 and your Equifax score may indicate 658.
When you estimate credit score using credit score estimator and credit score calculator you will be getting the opt fed back on how can you improve your credit score. It’s the best way to learn on how to raise your credit score fast depends on your current credit score rating.
While calculating the credit score using the credit score calculator you can know how some actions can lead to the decrease in the credit score. To say briefly if you have an access to online you can manage your credit score effectively by making use of the websites like credit.com
As we mentioned already your credit score is calculated by based on the information on your credit history. Below information can help you to understand the process.
Nearly 35% of your credit score is determined based on your credit history. You can see this separately under your each account. If you make any late payments it will decrease your credit score. When your payments are late by 120 days you will experience drastic decrease in the credit score.
Your debt to credit ratio plays a role around 30%. This ratio is called by the variable utilization. Always try keeping your credit balances under your credit limit. If your credit balance is very close to your credit limit then your credit score will be much lower.
Your credit history length will account for 15% of the score. Various types of credit will have various scores. It will come around 10%.
The remaining 10% of the credit score will be determined by based on your credit inquiries.
Having knowledge on what factors will affect your score and what will not affect your score plays a very important role in improving your credit score. So play wisely with your credit card and often estimate credit score by using the reliable credit score calculator.
This should help you to uertdsnand how credit scores work..FICO scores from 300 to 850 and Vantage scores from 501 to 990.Here is the breakdown for both systems.Vantage Plus system scores from 501-990.A-901-990B-801-900C-701-800D-601-700F-501-600FICO system scores from 300-850.Elite-740- upPrime-700-739Preferred-660-699Standard-625-659Sub-prime-624- underFICO is the only one that matters since it’s the one that all major lenders look at. So as you can see it depends on if your looking at a true FICO score or a Vantage plus score. As far as what makes up credit scores it’s the following;1. Payment history (longer the better) 35%2. Time in bureau (longer the better) 15%3. Types of credit (mix of credit cards installment loans) 10%4. New credit (new accounts and inquiries) 10%5. Debt to credit ratio (lower the better) 30%And just so you will know Experian only uses Vantage, Equifax only uses FICO and Transunion uses both depending of which type of credit report is requested of which there are 3. The standard that people get from the Internet, the auto enhanced which only car dealers and lenders see and the factual which only mortgage people see. The last two are not available to the general public.To have the very best score and profile people need 3-4 credit card accounts (revolving) with balances below 30% of their credit limits and 2 cars, homes, boats, motorcycles, computers, furniture or personal accounts (installment) all with good long payment history’s.Add to this that unless you get your scores either direct from either Equifax or myfico.com your getting what’s called a FAKO score which makes it even worse because they all have their own system to calculate scores.Credit scores are based on the last 24-months of activity, and they can change daily depending on what information has been submitted by your creditors.