Credit Report Scores

The term credit report scores refers to a method of measuring credit worthiness or reliability by assigning a numerical value to a series of characteristics to be measured for making such determinations.

There are more than 100 characteristics that are drawn from a variety of sources, including credit reports and public records. These numbers are then used in the creation of credit report scores. The Fair Isaac Company created the system that is most commonly used for this purpose, which is why credit report scores can also be referred to as FICO scores.

Although there are several companies that do credit scoring, most lenders use the Beacon FICO score. Credit scores generally range between 300 and 900. A low credit report score can affect a consumer’s ability to get a loan or mortgage. It can influence the rate of interest a consumer is subject to in financial dealings. It can also effect transactions that seem, on the surface, to be unrelated to credit matters. A prime example of this is found in insurance rates.