Credit scores are reported as a number, usually in the 300-900 range. The higher the number the better the score. Creditors see the number as an indicator that an individual will repay a loan. Typically, scores are determined by reviewing the following data:
- Your history of late payments
- Non payments
- Current level of debt
- Types of credit accounts
- Length of credit history
- Number of credit inquiries
- History of applying for credit
- Bad credit behavior, such as writing bad checks
Personal details such as race, gender and religion are definitely not considered when determining your score. It’s also worth noting that each major credit bureau has its own method for calculating credit scores. However, the scoring models have been fairly well standardized so that a “600″ score at one bureau is roughly the equivalent to the same score at another.
