Understanding how credit scores are determined has always been a mystery to me and in asking others about it, I realized that most people feel the same way. It is absolutely amazing to me that we know so little about something that has such a significant impact on our lives.
In an attempt to make Nancy Drew proud, I decided it was time to see what I could find out. I was only more frustrated after searching the internet as the information was overwhelming and inconsistent. More confused than ever, I decided to attend a class on the topic.
Here’s what I learned…
Credit scores, also known as Beacon scores, are the main indicator used by lenders to determine your credit worthiness. The specifics on how your credit score is determined are as follows: