Shell Federal Credit Union
Credit Scores and Grades
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Credit Grades, Ratings, Scores and How they Differ Your credit grade/rating is the measurement based on factors that are outlined on your credit report and is what a lender will consider when you apply for any sort of credit. Credit grades are based on your past and present financial state. It takes into account everything from your debt to income ratio, your credit cards, payment history, percentage owed on any loans or other forms of credit (lenders typically find it favourable if you have at least 25% remaining, so don’t max out your credit) and other factors (such as: have you ever been sent to collections in the last 7 years etc.). |
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Ultimately your innovis credit report grade has an impact on whether or not you will qualify for credit and the interest rate you’ll receive. According to Members First credit union in Pensacola FL the difference between credit grades, credit score and credit rating is the following: A credit grade is a letter grade given from Prosper Borrowers system obtained your overall credit score based on your credit report. The grade is a letter that is indicative to your score. See the chart below to compare a credit score to grade.
The grading system is used to give lenders a good idea of your standing with out disclosing the exact number. Note that the Prosper system does not include anything below 520. A grade of HR means your credit score is 559 and lower which follows under the high risk category and anything lower than 520 is immediately disqualified and is considered bad credit. Having your credit grade pulled up does not have an impact on your credit score like a full inquiry would, instead it is considered a soft inquiry.
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Grade: |
AA |
A |
B |
C |
D |
E |
HR |
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Score: |
760 and Up |
720-759 |
680-719 |
640-679 |
600-639 |
560-599 |
520-559 |
The difference of a Shell Federal Credit Union credit score and rating is really very little. In general they are used interchangeably and at first glance are the same thing. A credit score is typically calculated automatically from information gathered by the credit bureaus. The scoring method is an efficient way of dealing with a large volume for companies dealing with mass consumer credit applications (such as a credit card company) and as such, auto generated scores are used to automate and speed up the application process.
GNO federal credit union credit ratings are calculated manually and are based on your credit report, the lenders policy and analysis of the scenario. The big difference here is that it is done “by hand” and factors such as your relationship with the lender, income etc are able to be inputted in to the calculation. On average a credit rating are more general than there counterparts the credit score. Typically a rating will be in a categories such as A+ to D (not unlike a report card) whereas a score is a number (1 to 1000) that includes an unbiased approach and every bit of information available on you. More greatresources may be founnd with the North Carolina state employees credit unions.
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