The Experian Credit Score

As you go about preparing to apply for a loan, you are finding yourself having to deal with issues pertaining to your credit history -- your credit report and your credit score. While you may have some understanding of the importance of the credit report and credit score that are provided by the three major credit reporting agencies in operation today, you actually may want some more specific information about these credit reporting agencies.

To this end, this article has been prepared in order to provide with an overview of and introduction to one of the three major credit reporting agencies that are in operation today: Experian. Armed with this information, you will be in a better position to understand the whole credit rating and credit scoring process as part of obtaining a loan in this day and age.

Understanding How Your Credit Score Works

When all is said and done, it really is not all that difficult to understand how your credit score works. If you attended school at some point in your life, you already have the basic tools towards understanding how your credit score works.

Your credit score (or FICO credit score as it is sometimes called) is a numerical rating that allows a potential lender the ability to determine whether or not you are a good lending risk. The credit score helps a lender determine whether or not you should be extended credit or given a loan.

The FICO credit score system was created at the urging of the three major credit agencies, including Experian, during the 1980s by Fair Issac and Company, a private firm in the accounting and financial support services arena.

The FICO credit score system is owned by Fair Issac and is kept entirely secret by that company. No one outside that company really knows how a credit score or FICO score is computed -- that is beyond the three major credit reporting agencies, including Experian.

What Experian Does

Experian uses the FICO credit score system to assign a credit score to you of somewhere between 300 and 900. The higher the number, the better your credit history.

At Experian, the FICO score is determined through a consideration of payment history, current unpaid debt, how long you have had credit, number of credit inquiries, and types of credit you’ve had in the past as well.

Why Your Credit Score Matters

When all is said and done, your credit score is the primary piece of information that will determine whether or not you will be approved for a loan and what interest rate will be assigned to that loan. Therefore, it is vital that you work to ensure that your credit score is as high as possible.

Experian Up Close

You are entitled to obtain a free copy for your credit report once on an annual basis from each of the three major credit reporting agencies, including Experian.

The contact information for Experian is:

P.O. Box 2002
Allen, TX 75013
888-397-3742
experian.com