|
Credit
Score Details
While a credit
report can be considered your detailed financial history,
a score is an objective summary of that information. It
represents your creditworthiness as a number. Numerical
weights are placed on different aspects of your credit report
and a mathematical formula or computation is used to arrive
at a final score. There are literally thousands of score
models used in the credit industry which consider different
variables for different types of credit. Credit
bureaus offer several different types of scores in their
product portfolio, appealing to the vast array of creditors
and credit applications in the country.
Summary
Your BEACON® FICO score of 707 summarizes the information
on your Equifax credit report as of October 5, 2001.
FICO scores range between 300 and 850.
Higher scores are considered better scores. That is, the
higher your score, the more favorably lenders look upon
you as a credit risk. Your score is slightly below the average
score of U.S. consumers, though most lenders consider this
a good score.
Top
Positive Factors
The positive factors listed below reflect areas of your
credit behavior that are better than average, translating
into a higher FICO score. Continuing to manage your credit
this way will help to increase your FICO score over time.
These factors
are provided in order of impact – the first listed
has impacted your FICO score most positively and so on.
Top
Negative Factors
The negative factors listed below are reasons why your FICO
score is not higher. Your focus on these factors will help
you to raise your FICO score over time. These negative factors
are provided in order of impact to your score – the
first factor listed indicates where you stand to gain the
most points over time and so on.
How
Lenders See You
A majority of lenders use FICO scores as one method to estimate
an applicant's credit risk. People with high FICO scores
are likely to repay loans and credit cards more consistently
than people with low FICO scores. Although FICO scores are
remarkably predictive, no one can predict with certainty
whether or not an applicant will repay a credit account.
As a group, the
consumers in your score range, 700-749, have a delinquency
rate of 5%, as illustrated in the graph. This means that
for every 100 borrowers in this range, approximately 5 will
default on a loan, file for bankruptcy, or fall 90 days
past due on at least one credit account in the next two
years.
Most lenders
would consider consumers in this score range as very low
risk.
|
