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What is a Credit Score

April 12, 2012 by  
Filed under Blogs, Credit Score

by: .

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Credit Score

A credit score is a number which is based on a statistical analysis of a person’s credit file, to represent the creditworthiness of that person.  A credit score is primarily based on credit report information typically sourced from the credit bureaus.  A credit score is primarily based on credit report information, typically from one of the three major credit bureaus: Experian, TransUnion, and Equifax.

Different Types of Credit Scores


Score Type

Score Range

*FICO Fair Isaac Co.

FICO Score*



ScorePower Score



PLUS Score



Vantage Score



TransRisk Score


*FICO has more than one formula for determining a credit score.

*The 3 most common FICO Algorithms are:

  • FairIsaac 2.0 (used by Experian)
  • Beacon 5.0 (used by Equifax)
  • FICO RiskScoreClassic 04 (used by TransUnion).

Don’t let the different credit scores confuse you, they all follow the same basic algorithm in determining your creditworthiness.


By improving the factors which are used to calculate the credit score, Credit Firm helps increase your credit score.

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Why do you need a good credit score

Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt.

Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits.

Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, landlords, and government departments employ the same techniques.

Sign Up Now and Raise your Credit Score! Let Credit Firm.net help you qualify for a mortgage, auto loan, or lower interest rate.

Save money by increasing your Credit Score.


8 Comments on "What is a Credit Score"

  1. Marine Pina Urrútia on Fri, 20th Apr 2012 12:29 AM 

    Thanks for that awesome posting. Useful, and it saved MUCH time! 🙂

  2. Dedric on Fri, 27th Apr 2012 6:42 PM 

    Thank you for this unique article. I especially
    enjoyed reviewing it and ought to discuss it with everyone.

  3. Pratibha Seddigh on Sun, 13th May 2012 8:17 PM 

    This is so exciting! I don’t think you’ve considered
    what happens day to day, but I still think you make a lot of sense.

  4. Credit Firm Admin on Mon, 14th May 2012 5:22 PM 

    That’s going to be a separate post. Stay Tuned.

  5. Sergei Awan on Mon, 14th May 2012 9:27 PM 

    One more thing, this is so true right now, but the

    economy changes so quickly we just never know hey.

  6. Cecille Tanikella on Tue, 15th May 2012 3:53 PM 

    “I’ve considered several web logs and I may for
    sure state that this is my favorite .”

  7. Credit Firm Admin on Tue, 15th May 2012 7:45 PM 

    Thank you!!! 🙂

  8. Vggqepu on Fri, 8th Jun 2012 12:17 PM 

    rparkerNo it is not.. This is what I got from Equifax when I
    asked them.Both the Equifax Credit Score and the FICO Score
    are general-purpose score medols used to predict credit risk.
    The Equifax Credit Score is a proprietary model created by Equifax.
    The FICO Score is a proprietary model created by Fair Isaac
    Corporation (FICO) . All Equifax consumer services and tools
    make use of the Equifax Credit Score unless otherwise indicated.
    The Equifax Credit Score uses a numerical range of 280 to 850,
    where higher scores indicate lower credit risk. The FICO Score
    uses a numerical range of 300 to 850, where higher scores also
    indicate lower credit risk.The Equifax Credit Score can be used
    to calculate a score for not only your Equifax credit file, but
    also your Experian and TransUnion credit files. This gives you
    the ability to compare your credit scores across all three credit
    reporting agencies, which can be useful in understanding your
    credit.Though both score medols predict similar types of risk,
    it is important to remember that because they were created
    independently by separate companies, they should not be expected
    to deliver identical scores. In some cases, an Equifax Credit
    Score and a FICO Score calculated at the same point in time may
    be similar. However, in some scenarios the scores may differ,
    perhaps significantly, based on how the different medols calculate
    riskMine was 23 points higher on Equifax then at my FICO

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