Would you lend the money to a friend if you knew that they had a propensity not to pay their debts? It is doubtful, and the same rule applies when the lenders consider to lend to you the money for purchases like houses, cars and articles of large ticket. It is true: your points of credit are held between you and your next principal purchase.

The concept of the credit started behind in 1956 with two men called Bill Fair and Earl Isaac. Just, a mathematician, and Isaac, an engineer, founded Fair Isaac Company; otherwise, known of us today, like points of FICO. This system of credit standardized the manner that the financial sector extends the "credit".

Consequently, there are 3 programmes of national credit at 3 different offices:

Fair, Isaac Model at Experian (formerly TRW)

BEACON at Equifax

EMPIRICA at Trans Union

The beacon and Empirica, subscribe to the model of the FICO of Isaac right of marking and then they integrate their own version of the points of the FICO of a person. In addition, when the borrowers seek a mortgage loan, the traction of lenders what is called "tri-amalgamate".
Tri-amalgamate fusions and check all the detailed information of each of the 3 trade unions in a report/ratio.

The principal determining causes of a category of credit are based on your report/ratio of credit and debt. The beacon marks the range of 400 - 844; while, FICO marks the range between 350 - 880. Reciprocally, the lenders determine the quality of investment of a loan, with the equivalent of a category, A, B, paper of C or D. ' A "represents there the loan of highest quality, and the paper of D is the loan of the largest risk for the investor.