For years, creditors have been using credit scoring systems to determine if you’d be a good risk for credit cards, auto loans, and mortgages. These days, many more types of businesses — including insurance companies and phone companies — are using credit scores to decide whether to approve you for a loan or service and on what terms... A higher credit score means you are likely less of a risk, and in turn, means you will be more likely to get credit or insurance — or pay less for it... The Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know how credit scoring works. ftc.gov What is Credit Scoring?
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