Statistics from your credit report define what your credit score is. Your credit score is not stored with your credit report, but is generated at the time there is a request to your credit report.
Why are credit scores used?
Anytime you apply for a loan the credit score effectively tells the lender based on a score rating, your ability to repay the loan based on your prior payment history, and your current credit status. Everyone from banks, auto dealers and mortgage companies utilize this method of credit rating to determine the risk.
There are other factors when applying for a loan, or purchasing a car that include an applicants income, length of employment etc. Many times additional household income is taken into consideration as well. The purpose many times for this is to account for the possibility of a co-applicant being added to the loan should the primary applicants credit history or score or length of employment fall short of meeting the requirements for the loan.
What can impact a credit report or credit rating?
The number of late payments made to a creditor.
“Charge-off” accounts.
These are accounts where...
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