– By Michelle Black, HOPE USA
Credit scores affect your life in many important ways. First, anytime you apply for a mortgage, car loan, credit card, or financing of any kind your credit score will be looked at to determine whether you are approved or denied financing. If you are approved, your credit scores are looked at again to determine what kind of interest rate you will receive. Credit scores are the #1 factor considered when you apply for a loan.
Since credit scores are the first key to loan approval, let’s talk a little about where these credit scores come from and how they are calculated. There are 3 major credit bureaus in the United States: Equifax, Trans Union, and Experian. Typically, each credit bureau will give you a different score. The following chart shows the basic makeup of a credit score with any of the 3 major credit bureaus. Read more »