A new kind of credit score for those with no credit
News from Washington Post:
In the finance world there is what’s known as the Catch-22 of credit.
Only those consumers who already have loans and make payments that show up on their credit report can get a credit score to help prove their trustworthiness to financial companies. Those who work mostly in cash but want greater access to credit are often locked out of the lending market because financial institutions don’t have enough information to evaluate them.</…………… continues on Washington Post
3 Things You Should Know About Your Credit Score
News from Fox Business:
Source: Flickr user Morgan.
Your credit score is one of the most important aspects of your personal finances. Whenever you need to borrow money, your credit will be scrutinized. Yet many people don’t know some of the most basic facts about their credit scores.
To help shed some light on this key part of your finances, we asked three Motley Fool contributors to talk about some things many people don’t know — but should — about their credit scores. Read through their descriptions and see what you learn about your credit score.
For starters, there is no single credit score, and your score will vary based on the scoring method used. The FICO score is the most widely used, but different lenders use their own algorithms to determine your risk level as a borrower and the interest rate at which they should lend you money. The one commonality across all credit scores, though, is the information it is based on, which is the data contained in your credit reports.
The three big credit bureaus — Equifax, Experian, and TransUnion — each collect as much credit data as they can on you. They then sell this information to lenders, which use the data to come up with credit scores. Onc…………… continues on Fox Business