Trans Union is a company headquartered in Chicago, Illinois, that provides credit information of more than 500 million customers and provides the TransUnion Credit Scores. It also provides information management services to nearly 45,000 businesses. This American credit bureaux markets credit reports to consumers which help them in getting loans from financial institutions.
What is a credit score?
A credit score basically is a three-digit number which is used by the financial institutions to evaluate the creditworthiness of the customers who approach them for loans. People apply for car loans, home loans, student loans, mortgages, and if your credit score it not at a positive position, then lenders may not give you money. Credit scores are calculated by the application of various scoring models on the information provided on the consumer’s credit report. As such, credit scores do not accept or reject the loan applications, the financial institutions may consider other factors such as your business strategies and prior experience, to decide whether to give out loan or not.
Some factors which can affect your credit score are:
• If you make timely payments on your loans, your percentage of On-time Payments increases, getting you good scores. Even if you make one or two payments, that will affect your credit score, so make sure that you pay all your bills and payments on time, to have a healthy credit score on your credit report.
• Derogatory marks are markings which severely affect your credit rating. These include bankruptcies, liens and foreclosures. The worst part is that these marks get removed after long time gaps, taking even 10 years in the worst case scenarios, and during this time, it may become impossible for you to secure loans from financial institutions.
• By averaging the age of your various loans, your credit report has the time duration which will be helpful in your case as the banks will have more information to assess your creditworthiness.
• If you have a number of credit accounts in your credit report, then that means you have been approved for credit by many lenders, and this becomes a positive thing for your creditworthiness.
With a good TransUnion Credit Score, you can be sure that you get credit at good rates.
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