Important info about credit scores

Posted on Nov 13, 2013

If you have ever applied for a loan in Augusta, Georgia or elsewhere, your creditors may have used your credit score, FICO score or beacon score in making their decision to loan you money.  In the 1950's a company by the name of Fair Isaac and Company first developed marketable credit scores.  Since developing a FICO score, companies seeking to lend money to their customers have purchased over 100 billion credit scores to date.  Each credit reporting agency now has a "brand" of credit scores.  For example, Equifax refers to their "brand" as a Beacon score.  Each agency uses a slightly different formula to calculate the score.  If you pull your Experian, Equifax and Transunion credit scores, you will see they are all somewhat different.

No matter what you call it - credit score, FICO score or Beacon score, this is simply a mathamatical formula by which creditors evaluate your credit worthiness.  Creditors in the CSRA, as well as, other areas of Georgia, want to assess the risk of loaning you money.  Will you pay it back?  If so, will you pay it back according to the terms of the contract?  This formula is used by companies worldwide and is considered to be a highly accurate way for a lender to predict whether or not you will pay back your debt.  While your score is only calculated from information appearing on your credit report, many lenders will consider other factors when giving you a loan such as your income and the length of time you have been at your present employer. See how scores are calculated here.

If you have a low credit score, don't give up.  Bankruptcy can help to improve your credit score by eliminating debt.  For a free consultation call us today at 706-868-1968.  At the Law Firm of Seymour and Associates, P.C., we are THE?? Bankruptcy Attorneys in the Augusta, Evans, Thomson and surrounding areas of the CSRA and we can help you recover.

Angie Seymour
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Bankruptcy Attorney Serving Augusta, GA