Empirica Credit Score Meaning

An Empirica credit score is a system used by the TransUnion credit agency.

The credit rating agency TransUnion uses a credit score called an Empirica score to rate people's credit. This score is not given to consumers but is used only for lenders. Credit scores have many uses, and they affect a person's ability to obtain a loan.

Effects

Credit scores of consumers can affect many things. The most important is the interest rate consumers pay for mortgage and car loans. The higher a person's credit score, the lower their interest rate.

FICO Score

Many credit rating agencies calculate scores using a model called FICO. FICO breaks down a person's credit by using five categories. The categories are calculated using percentages, and the person's credit score is then computed. The five categories are payment history, debt owed, length of credit, pursuit of new credit, and types of credit history. Credit scores vary depending on what is listed on the report that day.

Empirica Range

An Empirica credit score ranges from 150 to 934. A score of 150 represents the worst credit possible, whereas a credit score of 934 represents the best credit possible. To qualify for a good interest rate, lenders typically require a score of 680 or higher. A credit score of less than 500 is considered extremely poor and that person most likely would not qualify for a loan.

Purpose

Any credit score is a snapshot of a person's credit risk. Scores are used by lenders in determining loan approvals and credit lines.

References

• Vision Credit Education Inc.: TransUnion Score
• The Center for Debt Management: Your Credit Score FICO. Beacon, Empirica, & Fair Isaac
• 760 Credit: Empirica Credit Score Article; Checking Your Credit Score
• Credit Central: Understanding Your Credit Score