Information About You That Is Not Used When Calculating Your FICO Credit Score
The fair credit reporting act lays down certain guidelines and rules as to what information can be used for reporting to the credit report as well as during the calculation of a credit score. Your credit score is a three digit number that is a reflection of information present on your credit history. The factors and information that are reported onto a credit report are the ones that influence the calculation of a credit score. Which means that the information that is not included on to the credit report will also not be used during the calculation of the credit score. This means that typically your credit score is calculated using your billing and payment history, the balance and credit limit on your credit cards, the length of your credit accounts, the type of credit accounts you have and the number of enquiries and credit applications that have been made.
The federal law prohibits the calculation of credit score on the basis of information like your race, color, nationality, gender and marital status. Whether you receive public assistance or are unemployed is also not supposed to affect the calculation of your credit score.
The information that is not included in your credit score calculations is:
your age — your salary, employer, employment information — your bank balance — your address and where you live — whether you pay child support or alimony — your own person requests for your credit report — soft Inquiries is made by creditors for the purpose of read approved and promotional offers, enquiries by landlords and employers, enquiries made by existing lenders were purpose of maintaining and taking your credit account — whether or not you have been a part of credit counseling and any and all information that is not present on your credit report.
While fico is a commonest form of credit score that is used by lenders and that is the credit scoring model that we’re talking about when we speak of information about, there are different types of credit scores that are used by different lenders for specialized purposes. For example a credit score for an insurance company may take into consideration the kind of vehicle you drive and where you live. Similarly a credit score for a mortgage lender may include some of the information from above such as your income level etc. Most of the times when a lender requires more information before granting a consumer a line of credit they usually ask the consumer to provide this information in the form of extended paperwork.