Personal Credit Rratings

In countries such as the United States, an individual's Credit history is compiled and maintained by companies called credit bureaus. In the United States, credit worthiness is usually determined through a statistical analysis of the available credit data. A common form of this analysis is a 3-digit credit score provided by independent financial service companies such as the FICO® credit score. (The term, a registered trademark, comes from Fair Isaac Corporation, which pioneered the credit rating concept in the late 1950s.) or by the bureaus themselves. One's credit score, along with their credit report, affects one's ability to borrow money through financial institutions such as banks. In Canada, the most common ratings are the North American Standard Account Ratings, also known as the "R" ratings, which have a range between R0 and R9. R0 refers to a new account; R1 refers to on-time payments; R9 refers to bad-debt. The factors which may influence your credit rating are: ability to pay a loan, interest, amount of credit used, spending money instead of using it for useful purposes e.g. paying back a loan, saving patterns, spending patterns, and many more.