The term is used to refer to the provision of credit report from all the three consumer reporting companies. There are three consumer reporting companies in the U.S and every individual entitled to a free credit report from each of the three credit reporters within every twelve months. Credit score is thus a calculated figure from the consumer report companies on the status of your credit worthiness. It is important to note the fact that although all the three credit consumer report companies give a report on an individual, the score must not necessarily be the same as each o the consumer report companies may collect different information because each of them has its own system of collecting their information.
When we talk of three scores credit, we are referring to the ratings compiled by each of the three companies on your credit card's activities. As earlier stated that the consumer reporting companies may not give similar feedbacks on a single individual's account, the individual can manipulate the different results fro each of the companies in order to get the report that puts him/her in the best credit worthy position.
The credit scores are measured in scores ranging from 300 to900 depending on the evaluation of the credit bureaus on your credit performance. The credit bureaus use the logistic probability modeling method to calculate credit scores in countries like Australia although non-linear method is also used in some countries. Taking a look at the Canadian credit scores system, it is worth to note the great similarity between the system and that used in the U.S. as a matter of fact, two of the credit score bureaus operating in the U.S also happen to be operating in Canada. These are Equifax and TransUnion. The other credit bureau in the U.S known s Experian also tried its catch in Canada in 2008 but quickly withdrew its operations.
Factors that determine your credit scores
Credit scores are largely determined by your records regarding payments of any bills incurred on your card. The bills may include rental fees, insurance premiums and mortgages among other things. If you have been declared or applied for bankruptcy at any given time, this may affect your credit scores. Another reason that may lead to poor credit scores rating is the frequent inquiries on your credit report by investigative agencies or if your transactions are prawn to fraud investigations. It is however important to note that your credit score does not reflect your details such as gender and age or even your nationality and religion.