Information you have, late payments, collection actions, outstanding debt, and how long you’ve had your accounts вЂ” is collected from your credit application and your credit report about you and your credit experiences вЂ” like your bill-paying history, the number and type of accounts. Creditors compare this information towards the credit performance of individuals with similar pages. A credit scoring system prizes points for every single component that helps anticipate who’s almost certainly to settle a financial obligation. A complete amount of points вЂ” your credit score вЂ” assists predict just exactly exactly how creditworthy you will be, this is certainly, exactly exactly how most most likely it really is you will repay that loan and then make the repayments whenever theyвЂ™re due. To learn more about fico scores, read How Credit Scores Affect the purchase price of Credit and Insurance.