Understand Credit Reports, Scores and Ratings

Understanding and defining credit report, credit score and credit rating. First, credit report shows a snapshot of your credit history and is used to create credit scores and or ratings Second, credit score shows how much of a risk you could be to a lender. Some credit reporting companies use a scale from 300 to 900 and the higher the number the better your chances of getting a loan. Third, credit rating shows whether or not you pay your bills on time on a scale from one to nine. A

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