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Credit Scoring Model
You already know how important your credit report and credit score are for your financial future. You may not know how credit scoring works. While each of the three credit reporting agencies, Experian, Trans Union, and Equifax use slightly different criteria for determining the credit score they give you and the credit report information they obtain, there are some similar factors that go into determining a credit model.
One of the things they will look at is your overall payment history. They will weigh major factors such as collections of bankruptcies, as well as minor problems such as the number of late payments. They may compare your score to an average of other consumers who have similar characteristics. They cannot use race, religion, or similar comparisons, but can compare you to others in a specific age group. Credit Bureaus are not allowed to discriminate against those of elderly age when doing such comparisons.
While it can be unsettling to think that you are being compared against others, remember that the thing that is being compared is your credit and repayment habits, not anything personal. These statistics that credit bureaus use to determine their credit scoring model can sometimes seem complicated, but ultimately they are based on statistics, percentage rates, and formulas.
If you’d like to know more about credit scores, credit reports, and credit scoring, please see other articles in this section. Or, you may wish to do some research at the library or on the internet. There is a lot of information available now to the public about credit scoring and credit repair that is invaluable. Knowing as much as you can about your credit profile can make you a more educated consumer and prepare you for more situations that you may face when it comes time to make a major purchase. Leaning more about credit can be an interesting, and fruitful process. Hopefully, now that you have learned a little bit about credit score models, you will want to learn more. | 
