[Video] Debt-to-Income Ratio vs. Debt-to-Credit Ratio
What is the difference between a debt-to-income ratio and a debt-to-credit ratio? Learn how these ratios can affect your credit at Equifax!
Credit scores are based on your credit history and can play a significant role in the type of loan and loan terms, such as interest rate, a lender may offer you. A credit score generally ranges from 300-850, and the higher your number, the better you look to a lender because it signals that you’re more likely to repay your debt on time. Credit scores are usually calculated by taking the following into account: Payment history, credit utilization (or the percentage of your credit limits you’re using), length of credit history and mix of credit accounts, amounts you owe, recent credit behavior, and available credit. Lenders, creditors and others often use credit scores to help them determine the likelihood that someone will pay back what they owe on transactions such as loans, credit cards, mortgages, utilities, and even apartment rentals. Credit scores can also be used as one factor in determining loan and credit terms, such as interest rates. People with very low credit scores may be referred to as subprime borrowers, and lending institutions may charge higher interest rates in consideration of the increased risk of lending money to these borrowers. Credit scores are generally calculated using information from from one or more of a person's credit reports from the three nationwide credit reporting agencies, Equifax®, Experian®, and TransUnion®. You can see your VantageScore credit score, based on Equifax data, for free here. A VantageScore is one of many types of credit scores.
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Learn how the changes to medical collection debt reporting on credit reports affects credit scores, and actions you can take to help prevent debt from medical bills.
Installment vs. Revolving Credit – Key Differences
Find out what installment and revolving credit accounts are. Plus, learn how to spot the key differences between the two.
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[Video] How Often Does Your Credit Score Update?
How often does your credit score update? Equifax can help you find out. Learn how often credit scores are updated with our help today!
[Video] Is It Okay to Check Your Credit Score?
Checking your credit score is a great way to monitor your financial health. Wondering how to check your credit score? Get tips and advice from Equifax!
[Video] Why Do Your Credit Scores Change?
Have you been wondering why your credit scores change over time? Click to learn more from Equifax about the different factors that can affect your credit scores.
Are Misconceptions Affecting Your Credit Scores?
You may already know your credit scores play a critical role in your access to credit. Learn to sort out fact from fiction when it comes to credit scores.
Rebuilding Your Credit After a Foreclosure or Eviction
If you’ve experienced a foreclosure or eviction, you may be wondering how to rebuild your credit history after a foreclosure or eviction. Learn what happens to your credit during a foreclosure or eviction, how you can address the damage and more.
What Is a Credit Score?
What is a credit score? Equifax can tell you all about the credit score range, how credit scores are calculated and much more.
Why Your Credit Scores May Drop After Paying Off Debt
Paying off debt doesn't always improve your credit score. Read about the factors that impact your credit and why paying off debt may lower your credit score.
How to Raise Your Credit Scores Fast
You can improve your credit scores by following a few simple steps. Learn about what factors can raise your credit scores, what to expect and more at Equifax.
What Is a Rapid Rescore?
Changes in your credit history may take time to be reflected in your credit scores. A rapid rescore aims to accelerate the updating process. Learn what a rapid rescore is and when it might make sense for you.