-   Credit Scores  -

A credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the credit worthiness of that person, which is the likelihood that the person will pay his or her debts. A credit score is primarily based on credit report information, typically sourced from credit bureaus / credit reference agencies.

Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.

Credit scoring is not limited to banks. Other organizations, such as mobile phone companies and government departments employ the same techniques. Credit scoring also has a lot of overlap with data mining, which uses many similar techniques.

A credit score is a number between 330 and 830, based on a statistical analysis of a person's credit files, to represent the credit worthiness of that person, which is the likelihood that the person will pay his or her bills. A credit score is primarily based on credit report information, typically from the three major credit bureaus namely Experian, Transunion and Equifax.

FICO is a credit score developed by Fair Isaac & Co scale. It is used by many mortgage lenders that use a risk-based system to determine the possibility that the borrower may default on financial obligations to the mortgage lender.

Each year, a person in US is entitled for one free credit report from each of the 3 agencies. The 3 Credit bureaus run a website where users can get their free credit report, normally without the credit scores. The credit scores would be available as an add-on feature of the report for a fee.