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The PLUS Score consumer credit scoring model was developed and is used by Experian, a national credit reporting agency. The PLUS Score is used to weigh credit risks that may influence the rates and terms offered to a potential borrower. The mathematical model was designed to help borrowers understand which factors improve and lower their credit score.
Creditors use the score to determine the level of risk associated with a potential borrower. Creditors assume that the lower the score is, the higher the risk for loan default may be. The score could be a factor in how a lender determines a mortgage rate or car insurance premium, for example. Therefore, it’s important to monitor your credit report and your payment habits to ensure that your PLUS Score is as high as it can be. Some of the elements on which your PLUS Score may be based include the amount of credit you assume, length of time you’ve used credit, number of new credit accounts, payment history and types of credit. By accessing your PLUS Score report you will be able to benefit from credit analysis that could help you determine where you need to improve your credit and what steps you need to take to improve your score. Some problems can be addressed relatively easily while others will take a greater commitment in order to achieve the desired result. If you have specific concerns about your PLUS Score or just need advice on how to address a credit issue, contact a nonprofit consumer counselor.
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