Where does your credit score come from?
A) It is calculated from your work and sent to Equifax, Experian, and TransUnion.
B) It is calculated by Equifax, Experian, and TransUnion.
C) It is based on information in the credit reports complied by Equifax, Experian, and TransUnion.
D) It is based on information you provide to Equifax, Experian, and TransUnion
C) It is based on information in the credit reports compiled by Equifax, Experian, and TransUnion.
What is the minimum recommended frequency that someone should check their credit reports?
The minimum recommended frequency to check one's credit reports is annually.
So should someone check it every year, every two month, or every five years?
It is recommended to check your credit reports at least once a year. However, it can also be beneficial to check them more frequently, such as every few months, especially if you are actively monitoring your credit or have concerns about potential fraudulent activity.
The correct answer is C) It is based on information in the credit reports compiled by Equifax, Experian, and TransUnion.
Your credit score is calculated based on information found in your credit reports, which are compiled by credit reporting agencies such as Equifax, Experian, and TransUnion. These agencies gather data from various sources, including lenders, credit card companies, and public records. They collect information about your borrowing and repayment history, such as the amount of credit you have, the amount you owe, your payment history, and any negative information like late payments or bankruptcies.
Using this information, credit scoring models are applied to generate your credit score. These models use algorithms to assess your creditworthiness and assign you a numerical score. The most commonly used credit scoring model is the FICO score, although other models like VantageScore may also be used.
So, your credit score does not directly come from your work or from the information you provide to the credit reporting agencies. It is derived from the data in your credit reports, which reflect your borrowing and repayment behavior.