The information that impacts a credit score varies depending on the score being used. Credit scores are affected by elements in your credit report, such as:
  • Number and Severity of Late Payments
  • Type, number and age of accounts
  • Total debt
  • Public records
Credit scores do not consider the following information:
  • Your race, color, religion, national origin, sex or marital status. U.S. law prohibits credit scoring from considering these facts, any receipt of public assistance or the exercise of any consumer right under the Consumer Credit Protection Act.
  • Your age.
  • Your salary, occupation, title, employer, date employed or employment history. However, lenders may consider this information in making their approval decisions.
  • Where you live.
  • Certain types of inquiries (requests for your credit report). The score does not count “consumer disclosure inquiry” requests you have made for your credit report in order to check it. It also does not count “promotional inquiry” requests made by lenders in order to make a “preapproved” credit offer or “account review inquiry” requests made by lenders to review your account with them. Finally, inquiries for employment purposes are not counted.

How a Good Credit Score is Determined

Developers of credit scoring models review a set of consumers — often more than a million. The historical credit profiles of these consumers are examined to identify common variables. The developers then build statistical models by selecting the credit variables most predictive of future behavior and assigning appropriate weights to each variable.

Published August 17, 2010
This entry was posted in Credit.

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