Do you remember going to school when all you had to figure your math problems with was a pencil and a slide rule? Maybe you are younger than that. Perhaps you remember having a calculator that was as big as your textbook and only being allowed to use it for homework and never on tests? If you are younger still, you may remember being thrilled to discover that when you took harder math classes in school – like Calculus, for example – your teacher actually expected you to have and use a calculator every day.
Well, now we have calculators that graph and make charts and require a huge manual to understand, but that is not the only kind of calculator anymore. Nowadays, we have a calculator for everything. You can find love life calculators, calculators that predict how likely someone is to be successful in a certain career, and even calculators that determine the precise amount of water to give your houseplants.
Even with all these different types of calculators, the one that is likely to have the biggest impact on your life is the credit score calculator. What exactly is a credit score calculator? Well, a credit score calculator is a graph or computer program that can determine your creditworthiness by combining a bunch of different data about you and your finances into a formula and spitting out a number that represents you as a credit consumer.
The credit score calculator is what determines your FICO credit score, and the credit score is what lenders use to decide whether or not they want to lend you money to buy a house, car, boat, or big screen TV. So, it is important to have an idea of what your credit score might be, and using an online version of a credit score calculator is one way to get a pretty good idea of what it may be.
What kinds of questions will a credit score calculator ask you? You will answer questions that are related to the main criteria for determining your credit score – the length of time you have had credit, how much debt you have, how often you have been late with payments (if at all), and the like. Some common questions are:
• How many credit cards do you have?
• How many different types of credit do you have?
• How many debts are currently thirty days late?
• Have you ever had a bankruptcy?
• What is the total amount of money you owe?
• What is your gross salary?
• Have you ever had a tax lien or judgment against you?
• How many cards do you have that are “maxed out?”
If you want to get a pretty good idea of what your credit score might be before you apply for a mortgage or car loan, using a credit score calculator might give you a pretty good idea.