There are quite a few common questions many of us have when we start to take responsibility for our personal financial situations and look at the numbers that greatly determine the amount of financial power we wield: our credit scores. Let’s take a look at a few of the most common questions about credit reports here:
How are credit reports created?
An agency known as a credit bureau creates your credit report. The three credit bureaus that issue credit reports in the United States are Experian, Equifax, and TransUnion. These three bureaus gather as much financial information as they can about every individual in the nation in order to create a credit report about each person’s creditworthiness. Each report is given a numerical designation which is known as a credit score.
What does your credit score start at?
This is one of the least understood questions about credit scores in general. While most people think that you automatically get a credit score when you turn 18 years old, in actuality you don’t start with any credit score at all. Your actions in the initial six months with credit are designated to you to dictate what your credit score will be since the three credit bureaus need to have a baseline of data in order to determine your creditworthiness.
What is a good credit rating?
Experian, Equifax, and TransUnion all determine that a credit score of 700 or above is generally a good credit rating.
What is an excellent credit score?
Experian, Equifax, and TransUnion all determine that a credit score of 800 or above is generally an excellent credit rating.
What is the best credit score you can have?
The best credit score possible is 850. This is because of Experian, Equifax, and TransUnion all rate credit scores on a range between 300-850.
If you still want further clarification or answers to questions like “How are credit reports created?” or “What’s the highest credit score?” feel free to contact us anytime at Color My Credit! It would be our pleasure to help you understand what factors most affect your financial situation and help you improve them!