How Are Credit Scores Calculated?

For most of us, our credit scores determine everything about bout our lives. They determine whether we get that new car or not, whether we get the house, how much we may of interest on the house, whether we can get loans when we hit a rough patch. Having a good credit score can change your life, and conversely, a bad one can ruin it. So how are these life-defining financial scores calculated?

All images courtesy of Creative Commons or protected under Fair Use. For questions or concerns about the use of any media, please contact the page directly.

Music:

[rfvcmtd]

Mitochondria is the powerhouse of the cell

[cryptonian]

Thank you pythagoras. I don’t know where i would be without studying your math for 5 years

[stevenluo]

Experian Equifax and Transunion are different credit bureaus with different set of information about your credit history, but with similar organization of the information.
FICO and Vantage Score are just methods of calculation based upon the information in your credit report from each bureau. You can have six credit scores from these alone. And each "lender" or institution or agency will have different scales as to what credit scores are what rating they say.

[Jayc]

I have to say that debt to income is not a thing and most creditors actually have no idea how much money you make.
What they care about is debt to debt cap, or the percentage of your available lines of credit that is being utilized. Other than that good video!

[mexicanunicorn]

I'm young and trying to get a good start in life before I leave high-school

[dominicthesinner]

Great Video! Sorry, all the comments are bots.. and am not

[_ulanberuya.d]

It’s fully guaranteed and safe and I know this because my cousin has used em to increase his and it’s been two weeks now without any sort of trouble, I’m telling you, he’s the best.

[zenmeister]

My credit score has consistently gone down ever since I took out a Merrick Bank credit card. That's even after I have NEVER missed a payment, ALWAYS pay off my entire balance each month (99% of the time), ALWAYS pay all my bills on time. It seems to me that credit scores are more a reflection of these agency's money paranoia than the consumer's payment history! I also get the feeling that these agency's actually enjoy attacking one's credit score...just say'n'...

[RETUSAF]

I have a low credit score because i don't have debt and don't borrow money. Credit scores are a scam. The people didn't create a system that makes them pay more for products and services.

[gotperfectscoreusingroycre]

I had improved my credit score from 500 and up to 775. I highly recommend this company they have a good reputation and they follow through with what they say thank you for your services Roy.

[bbyyoshi]

to anyone new watching this, the comments talking about Roy are bots and not real. do not use roy to help with your credit.

[reshadunchained]

Credit scores on the blockchain might have more transparent calculations soon

[deesmith]

Credit scores don't trust or believe in them. They fluctuate for no reason.

[exytplu]

Net Worth > Credit Score. The typical pattern across these factors is debt acquisition and repayment, which is why the credit score concept is an inferior way of determining your financial position. I would instead focus on building wealth rather than building means to borrow it. On that note, present your excuses and justifications for your indebtedness to someone else who cares.

[loublev]

No credit score does not equal adverse credit.

[chrishammond]

Wow sounds super smart however very inaccurate information

[rfvcmtd]

Dude every comment here is a scam lmao

[ivanxdxd]

So it's basically chinese social credit.