Who Controls my credit score

[CreditDetailer]

The 3 national bureaus are 3 companies (that means they make profit in
exchange for service/goods). They are not here for your good. They are
companies looking to get paid. However, the Federal Trade Commission
(a.k.a. "FTC") created the FCRA (or Federal Credit Reporting Act)
which regulated how the bureaus operate and the rules they are held
to.

The 3 major companies are Trans Union, Experian, and Equifax. Your
credit score comes from a company who made judging cards
(approximately 10 of them, may more now as credit has progressed) to
rate you compared to other Americans. The Fair, Isaac & Company took 1
million records from all the bureaus and started sorting them to find
trends. The model became well known as the "FICO" model and is used by
the bureaus. Think of it as a bell curve (small percentage doing
extremely perfect or extremely awful, most of the numbers fall in the
middle)

Creditors will likely use this score to evaluate your credit rather
than actually thumbing through your report and looking at the actual
detail. (this was the common trend, now practically everyone is just a
Number. So make sure your number is accurate!). Creditors generally
look for a score of 620 or more for most purposes. A score higher than
680 opens more doors and can often give you lower rates & larger
purchases. Creditors make the rule for what score they fell
comfortable with, and the FICO scores determine that score based on
your history. So where do you fit in the picture? By having good
credit history and looking for all the mistakes the bureaus make. An
error by the bureau lowers your score, the Lender/Creditor does not
review your report for accuracy (even if you have proof) it is all
based on scores these days. (the score is supposed to take the review
work away form creditors to make their job easier.)

So what things make up your score?… it is largely based on the
following factors. We will discuss this in future posts