In addition to your credit history, some credit providers use a credit score to measure the likelihood that you will repay your loan.
Credit scoring provides an objective summary of your credit history
A credit score summarizes your credit history in a single number. It is generated by a mathematical formula that uses information from your TransUnion Credit Report. A credit score is a statistically validated indicator of risk. (A credit score is not currently available in all countries of Central America.)
Credit scores gained wide acceptance in the credit community in the United States during the 1950s. Today, credit scoring is a best practice among credit providers and is commonly used in many countries, including the United States, Canada, Colombia, Mexico, South Africa and Hong Kong.
One more piece of information for assessing your financial health
A credit provider may also use its own internal risk scores, along with a consideration of its relationship with you, the presence of any collateral or guarantors, and your demographic and financial information. That is why the same credit applicant with the same credit score may be accepted by one credit provider but rejected by another. Credit providers can also choose not to use a credit score as part of their decision. TransUnion does not approve or deny credit applications.
Credit scores are fluid and based on the latest information contained in your credit file at the time the score is requested. Therefore, a score generated previously may not be the same as one calculated today. This is another reason to review your credit report, including your credit score, on a regular basis.