The three credit reporting agencies — Experian, TransUnion, and Equifax are a clearinghouse for information on the credit rating of individuals and firms.
Credit score is a term often used to refer to credit bureau risk scores. It broadly refers to a number generated by a statistical model which is used to objectively evaluate information that pertains to making a credit decision (i.e.
credit cards, car loans, student loans, etc) that includes:
• Your payment history
• The total amount you owe
• The amount of time you’ve had available credit
• Whether you have any judgments entered against you
• Whether you filed bankruptcy
• The number of times potential lenders have reviewed
Information in the agencies’ reports is evaluated and interpreted into a “credit score,” which help lenders make loan decisions. Credit scores range from 300 to 850, and yours may determine whether you are approved for a
loan, the terms of the loan, and the interest rate.