The Equifax Credit Score

If you are in the process of considering applying for a loan for one reason or another, you likely are concerned about your credit scores, the credit scores that are maintained by the three major credit reporting agencies. In this article, you are provided with an overview of one of the three major credit reporting agencies that are in operation today: Equifax. 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.

How Your Credit Score Works

Your credit score is a numerical rating that allows a potential lender the ability to determine whether or not you are a good lending risk, whether or not you will qualify for a loan or credit extension of some sort. The credit score, also known as a FICO score, was developed at the three behest major credit agencies during the 1980s by Fair Issac and Company.

The methodology associated with the FICO score or credit score 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.

The number associated with a credit score or FICO score falls between 300 and 850. The credit score or 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.

Fair Issac and Company can be reached through its website at www.myfico.com.

Why Your Credit Score Matters

You need to keep in mind that your credit score really does matter. It is not something that can be ignored. When all is said and done, and in the final analysis, your credit score is the key and fundamental factor that will determine whether or not you will be able to obtain a loan, to obtain financing. Moreover, once you obtain a credit score that is sufficient to get you passed the threshold of loan approval, your credit score will be the determining factor as to how much money you will be forced to pay for interest relating to the loan.

Equifax Up Close

As mentioned a moment ago, Equifax is one of the there major credit reporting agencies in business today. You are entitled to obtain a free copy for your credit report once on an annual basis. If you desire additional copies of your credit report from Equifax during the course of a year, you will have to pay a fee -- which normally is not that much -- in order to receive an additional copy (or additional copies) of your credit report from Equifax.

The contact information for Equifax is:

P.O. Box 740241
Atlanta, GA 30374
800-685-1111
equifax.com

Once again, keep in mind that you are entitled to a complimentary copy of your credit report and credit score from Equifax each and every year. By obtaining your credit report, you can better monitor your finances … and your future.