Credit Score Is Used to Know the Credit Worthiness of an Individual
A credit score is a statistical analysis in the shape of numerical expression that gives an idea of a person's credit so that a person's credit worthiness can be known.
It is primarily based on the credit report information that can be sourced from credit bureaus.
Money lenders e.
g.
banks and credit card companies generally use a person's credit scores to evaluate the risk they might have to suffer if they lend money to that person.
To mitigate their losses due to a bad debt, they refuse to lend money to that individual.
Credit scores are also used to determine which individual can be given a loan safely and at which interest rate as well as the limit of the credit.
Alternatively, this also gives these money lenders the information on who will bring in the most revenue.
All this is possible because the credit score is obtained from a trusted system.
Credit scoring is not looked at by banks only.
Other service providers e.
g.
mobile phone companies, insurance companies, government departments and even landlords use this technique so that they do not lose money.
Fair Isaac Corporation is a publicly traded corporation and is responsible for creating the most popular and widely used credit score model in the US.
The risk scores in Fair Isaac Corporation range from 300 to 850 with 723 being the median it score from Americans in 2010.
Interpretation of the credit score can vary with each lender or industry.
The score of 620 has been looked at the divider between `prime' and `sub-prime'.
Generally all considerations about credit scores revolve on the health of the economy and how robust it is at any given moment as well as the risk lenders can safely take while providing funding to borrowers.
Identity theft is actually stealing another person's identity by assuming his identity or pretending to be someone else so that he can get credit and other benefits in that person's name.
The victim of identity theft can suffer adverse consequences if he is held accountable for the actions of the perpetrator.
Identity theft can also facilitate other crimes e.
g.
illegal immigration, terrorism, phishing and even espionage.
Individuals who are duped by having their identity stolen and suffering adverse consequences should resort to identity theft protection.
Identity theft can be divided into four categories: 1.
Criminal identity theft when a person poses as another to commit a crime.
2.
Financial identity theft committed when a person uses another individual's persona to get credit or other services 3.
Identity cloning which uses another person's information during daily life.
4.
Medical identity theft to obtain medical care, drugs and insurance.
To keep yourself safe from theft of your identity, it would be best if each person is careful of giving personal details to strangers, changing internet passwords frequently and making them more complex as well as inaccessible, keeping credit cards safe, etc.
It is primarily based on the credit report information that can be sourced from credit bureaus.
Money lenders e.
g.
banks and credit card companies generally use a person's credit scores to evaluate the risk they might have to suffer if they lend money to that person.
To mitigate their losses due to a bad debt, they refuse to lend money to that individual.
Credit scores are also used to determine which individual can be given a loan safely and at which interest rate as well as the limit of the credit.
Alternatively, this also gives these money lenders the information on who will bring in the most revenue.
All this is possible because the credit score is obtained from a trusted system.
Credit scoring is not looked at by banks only.
Other service providers e.
g.
mobile phone companies, insurance companies, government departments and even landlords use this technique so that they do not lose money.
Fair Isaac Corporation is a publicly traded corporation and is responsible for creating the most popular and widely used credit score model in the US.
The risk scores in Fair Isaac Corporation range from 300 to 850 with 723 being the median it score from Americans in 2010.
Interpretation of the credit score can vary with each lender or industry.
The score of 620 has been looked at the divider between `prime' and `sub-prime'.
Generally all considerations about credit scores revolve on the health of the economy and how robust it is at any given moment as well as the risk lenders can safely take while providing funding to borrowers.
Identity theft is actually stealing another person's identity by assuming his identity or pretending to be someone else so that he can get credit and other benefits in that person's name.
The victim of identity theft can suffer adverse consequences if he is held accountable for the actions of the perpetrator.
Identity theft can also facilitate other crimes e.
g.
illegal immigration, terrorism, phishing and even espionage.
Individuals who are duped by having their identity stolen and suffering adverse consequences should resort to identity theft protection.
Identity theft can be divided into four categories: 1.
Criminal identity theft when a person poses as another to commit a crime.
2.
Financial identity theft committed when a person uses another individual's persona to get credit or other services 3.
Identity cloning which uses another person's information during daily life.
4.
Medical identity theft to obtain medical care, drugs and insurance.
To keep yourself safe from theft of your identity, it would be best if each person is careful of giving personal details to strangers, changing internet passwords frequently and making them more complex as well as inaccessible, keeping credit cards safe, etc.
Source...