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    Edmundo Daco Jr.

    Credit Score is a very important profile that an individual in the US should have. It determines your worthiness to get loans, financing, and even credit cards from financial institutions. The formula to compute a person's credit score is very complex and are not released to the public by the credit score companies. The three major credit reporting bureaus in the US are TransUnion, Equifax, and Experian. There are various types of credit scores in the US, and they are:

    1. FICO Scores - These credit scores are provided by Fair Isaac and Co., being 350 as the starting credit score and 850 as the perfect one. Factors that determine a FICO score include payment history, credit utilization, age of accounts, new credit, and types of credit. Your credit data must be a year old to be included in FICO score calculations.

    2. Vantage Score - These are sold by VantageScore Solutions LLC, which was built to compete with FICO. Before, Vantage credit scores range from 501-990 which confused everyone. Today, the range is from 300 to 850. Aside from payment history and credit utilization, other factors that determine a Vantage score include balances, depth of credit, recent credit and available credit. Your credit data of 6 months are already eligible to be included in FICO score calculations.

    3. Insurance Scores - An insurance score determines a person's tendency to file an insurance claim. The lower credit credit score a person has, the higher chance that he will claim an insurance. Those with higher insurance scores tend not to claim insurance because they have more money to pay for services themselves.

    4. Lender-based scores - Some lenders who bought FICO or Vantage Scores may decide to edit out the factors and tailor them to their preference. They will device their own custom-made credit scores and use it for their consumers.

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