If you are like most Americans, you’re probably not too sure what a bad credit score is. It’s important to understand that there are many different factors which go into determining your credit score. The three major companies who calculate these scores – Equifax, Experian and TransUnion – all have their own formula for measuring the risk of lending money to an individual based on information from their reports. What they look at includes:
– Past payment history
– Types of debts (mortgages, car loans)
– Length of time since last delinquency or default of time since last loan or credit line
Why does this matter? If you want to be able to purchase a home or other products. in the near future, it’s important that you. A low credit score may mean that you are not able to be approved for a loan and, in some cases, it can affect your interest rate.
A bad credit score falls below 620, but what constitutes bad credit varies by lender.
How do you obtain your FICO Score and why does it matter? It’s important to know because of the impact it can have on your ability to purchase items in the near future. Your total number of accounts that are late or past due as well as their age and amounts owed will help determine where your credit stands which affects how much risk a lending company perceives from loaning money out with interest rates attached to them.