Understanding credit ratings: how your credit gets a score
Most people are aware that you need a good (or at least decent) credit rating in order to get credit cards, a mortgage or other lines of credit. But if you have no credit history, you may not have a credit score.
So how can you get a credit score if you can't get credit? There are ways to establish credit and get a credit score. But first, you should understand what makes up your credit score.
What factors make up your credit score?
Not all credit scores are the same. There are different scoring models, including CreditXpert credit scores™, VantageScore® and FICO™. Although each system has its own formulas to calculate credit scores, there are some basic similarities.
Most credit scoring methods:
The basic components of creating a credit score include:
Establishing a credit history
Even without a past use of credit, you may have already started building your credit history. When you are trying to establish credit, you may need to find methods to do this without qualifying for standard credit cards.
You can establish a credit history with:
Protect your credit rating with credit monitoring
Once you have created a credit history and finally have a credit rating, you should do your best to protect it.
With a IdentitySecure membership, it will be easier to keep an eye on your credit scores. The membership includes:
Protect your established credit. Enroll in IdentitySecure today!