What is a Credit Simulation?
A credit simulation is a software program which simulates the impact of various events on someone’s credit score. Many credit management and financial websites have a credit simulation application which people can use, and credit simulations are also sometimes available with personal financial software and through agencies which offer credit counseling. Being able to see the impact of something like paying down a balance or opening a new line of credit can be useful for some people. In a typical credit simulation, someone inputs his or her real score, or the program retrieves the credit score from an agency which does credit scoring. Then, the parameters of the simulation can be adjusted, with the score moving up or down depending on what has been changed. Typical parameters include: paying all bills on time for the next three months, substantially paying down balances, making minimum payments on all balances, taking out a new line of credit, and making balance transfers. For people wh
