Who Does Your Credit Score? How Does It Work?You may be surprised to learn that it is not banks or lenders who maintain your credit score. Instead, the major financial companies use third party specialists. In most major western nations that I have looked into, there are three main credit scoring companies. Since I don't know where you might be reading this, I shant name the firms as I don't know for sure which companies operate in your area. However, these firms are mostly the same companies just opeating in different territories. These firms have enormous computing power to maintain a database which logs and stores details for most of the adults in their particular country. In truth, it is all a bit 'Big Brother'. Each person has a small part of that database dedicated to them and another that relates to their residential address. Which means that, yes, you can be guilty by association. The major financial companies submit information to the credit scoring companies every month. This information will relate to the type of loan account you hold (mortgage / credit card / overdraft etc), the amount of your required monthly payment and whether or not payments are up to date. On it's own, this information is only possibly useful. However, when all your lenders submit this information each month about you and it is assessed over a number of years (usually two or three), it builds up a very accurate picture of how you run your personal finances. Details of past indiscretions, things like a bankruptcy, can stay on your credit file for up to a decade. This means that it may be difficult for you and your finances to escape your past. Your credit score will show it all! For more information relating to credit scores and referencing, please visit:
Credit Score
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