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Credit Score Management with Credit Score Simulator

Calculating credit scores is yet to be a public knowledge but an effective credit score simulator can give a fair idea to the consumer what his or her credit score status might be.

Exact formula of calculating credit score is yet to reach the public domain. Whether it is FICO scores or Vantage scores or any other, such knowledge is still with the major credit reporting agencies and the formulator of the calculators. However, gradually the pattern of calculating credit scores is coming to the forefront. A credit score simulator is the best way of learning what the credit score status is for average consumer till date.

What is a Credit Score Simulator?

Before using the simulator it is necessary understanding what it is.

  • All the three major credit reporting bureaus closely guard their formula of calculating credit report.

  • Credit score simulator can help the average consumer understand the status of their credit report and scores at any particular point of time.

  • Taking into account the current score and the events like credit card accounts going into delinquency and such others that will have major impact on the credit score, the simulator helps calculate the credit score of the consumer.
How the Simulator Works?

Simulators used to calculate credit score works in the following way.

  • Consumer is allowed to select specific actions that the credit bureaus use to determine their credit scores;

  • These actions are applied to the current credit score for determining approximately the effect these actions will have on the score; and

  • With advanced credit score simulators it will be possible choosing either single or combination of activities for estimation of the new credit scores.

Factors Taken Into Consideration

  • Some of the factors that are taken into consideration by the simulator for calculating the credit score are as follows.

  • Opening new credit card account with specific credit limits;

  • Increasing credit limits on existing credit cards;

  • Taking our limit specific mortgage loan;

  • Paying off existing credit card balances;

  • Leaving credit card accounts unpaid; and

  • Including tax liens in the credit report.

Steps in Using the Simulator

Steps that the consumer is required to take in using the simulator are as follows.

  • Determination of the actions having impact on the credit score.

  • After choosing the actions; it is necessary entering the financial figures and other data for calculations.

  • Once all these steps are taken, simple clicking on the "simulate credit score" button will help estimate the effects perfectly.

Limitations of Simulators

Every consumer should clearly understand that while the simulators that are used to calculate the prospective credit scores could be helpful to a large extent, they cannot be used as either sole or even primary basis for calculating the scores either fico credit score, Vantage, or any other.

Yet the credit score simulator has one advantage. It can make the consumer realize the potency of some of the factors affecting their credit scores substantially.


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