Credit scores simply explained
Let's start with the basics
Your credit score affects everything from your credit card limits to renting an apartment to the rates you receive on mortgages and other loans.
The higher your score, the more creditworthy you are to lenders. If your score is low, lenders will perceive you as a riskier borrower and therefore charge you higher interest rates.
How Your Score Is Calculated
Your credit score will vary depending on which of the three credit bureaus – Equifax, Experian and TransUnion – is used. To simplify this confusion, the three main credit bureaus partnered together to create the VantageScore. LendingTree provides you with the most recent version of this credit score: VantageScore 3.0.
- Credit Score
- A credit score is a number generated by a statistical system used to rate the credit of an applicants according to various characteristics relating to... <a href='/glossary/what-is-credit-score' title='See the full definition of Credit Score'>read more</a>
- Credit Report
- A credit report is a report of an individual's credit history that a credit reporting company or credit repository prepares to determine a borrower's... <a href='/glossary/what-is-credit-report' title='See the full definition of Credit Report'>read more</a>
- Credit History
- The record of how you've borrowed and repaid debts. <a href='/glossary/what-is-credit-history' title='See the full definition of Credit History'>read more</a>
- Credit Bureau
- An agency that keeps your credit record. <a href='/glossary/what-is-credit-bureau' title='See the full definition of Credit Bureau'>read more</a>
- Credit Reporting Company
- Company that collects information received from more than one credit repository, merges all the information, and reports it in one form; merged credit... <a href='/glossary/what-is-credit-reporting-company' title='See the full definition of Credit Reporting Company'>read more</a>
- Equal Credit Opportunity Act
- A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion,... <a href='/glossary/what-is-equal-credit-opportunity-act' title='See the full definition of Equal Credit Opportunity Act'>read more</a>
- Revolving Debt
- Revolving debt is the kind of debt that credit cards offer and is usually an easy way to get credit. It can be a useful tool when used with... <a href='/glossary/what-is-revolving-debt' title='See the full definition of Revolving Debt'>read more</a>
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