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Trans Union Provide a credit
scores for each consumer credit report |
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What
Your Credit Scores Mean to Lenders
Lenders Look at Credit
Scores from Trans
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Your credit scores may seem
like an objective way of reporting your credit history to potential
lenders, but credit scores are also the primary way that lenders decide if
they are willing to take a risk and lend you money and just how high that
risk is to them. Trans Union
is one such credit reporting agency that reports your score to potential
lenders. |
Credit scores are
calculated by comparing the data of millions of people’s borrowing and
repayment habits along with other statistically data.
This information is put into a scoring model that gives a number or
letter scoring based on the common practices of people with similar
backgrounds. It doesn’t mean
you can be the exception to a similar group, but it gives reporting
agencies such as Trans Union the ability to assign a risk value to your
credit history.
There are a number of
variables in creating a model for credit scores.
Each reporting agency such as Trans Union uses slightly different
criteria. These credit scores
are not part of your permanent credit report, but change and are
reevaluated with each application for a loan or credit that you make.
This is because the factors related to your credit are changing
each month with every payment you make.
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