Your Credit Report

A credit score above 700 signals good credit management and typically results in better rates than for those with scores under 700. Experian’s score range is between 330 and 830. There is a great variety of credit score models with several score ranges because different lenders may require custom scoring models when assessing your credit. Lenders use varying score models with different score ranges to help guide their decision on determining your rate and to grant you credit. For example, an auto lender and a mortgage lender have different needs and criteria, and therefore custom scoring models would be used to calculate your credit score. Even though these types of credit scores could be different in number and range, it is likely that your two different scores represent the same level of lending risk. When you get your credit score from Experian, you also get an explanation of what your credit score number represents in terms of how lenders view your risk or worthiness, along with the factors that affect your credit score. If your Experian credit score is good, you will likely have a good credit score with your lender, even if the numbers are different. When you review your score, you should not focus too heavily on the number, but where you fall in the range of risk and what factors in your history most influenced your score. These score factors will be consistent no matter which scoring model is used.

Credit scores are not included in your credit report.

A credit score is calculated by the credit reporting agency from the information that is in your credit report and is not part of your report. The information in your credit report is collected from various companies that provide data about your credit. These companies have to follow specific credit reporting rules, as listed under the federal Fair Credit Reporting Act. A credit score is not part of your report because it is an additional service provided that is calculated at the time of request.

Improving your credit score takes time.

If your credit score is based on accurate information, then there is no quick way to improve your score. Consumers can sometimes find inaccurate information in their credit report that was reported by lenders. And sometimes this inaccurate information could potentially affect your credit score negatively. In such cases, it is easy to file a dispute with Experian, where our specially trained agents can work with you to correct the information from your lender. In order to initiate the dispute, you will need a copy of your credit report.

Closing old or unused accounts can hurt your credit score.

The most important factor is not missing any payments. Other important score factors are having a low balance-to-limit ratio and the age of your accounts. If you close an unused account, you eliminate those open credit lines and in turn, decrease the amount of credit available. When compared to the amount you owe, this could increase your ratio and perception that you are close to your max on your remaining accounts. Also, the age of your accounts show your credit worthiness over extended periods of time and closing an old account could also affect you negatively.