West Palm Beach Bankruptcy Attorneys

How Credit Score Works

Your credit score is a very complex number that represents you whenever you apply for a loan, credit card, or mortgage. Although it can be fairly difficult to understand what determines your credit score, it can be helpful to know more about the topic.

The general idea behind a credit score is to let lenders know what kind of risk they are taking in loaning money to you. The most common credit score used to help determine this is your FICO score. The three credit bureaus that estimate your credit score are Experian, TransUnion, and Equifax. Each of these bureaus keeps a file about you and your credit history, which you can access at any time by paying a fee. You can also request a free copy of your credit report from these bureaus once a year. The scores can be different from bureau to bureau, so lenders tend to use all three score to determine the risk associated with lending to you.

The higher your credit score is, the lower your risk is determined to be. However, every lender has its own strategy to determine who to lend to. This means that even if one lender rejects you based on your credit score, another may be very willing to lend to you.

Contact a West Palm Beach Bankruptcy Lawyer

If you would like to know more about credit score and how bankruptcy can affect it, please contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates at 561.353.2500.