Your Credit - True FICO Scores VS. Other Credit Scores
Almost all creditors (about 90%) decide whether or not to accept credit applications based on the credit scores given by FICO; the Fair Isaac Corporation.
Since your FICO score is the one which creditors will be looking at when deciding whether to accept or reject your application, you should find out where your credit score stands by looking at the FICO website. This will give you a true snapshot of where your credit stands and why it is where it is.
Always be careful of the scam websites, any place with conflicting information, and the credit bureaus offering their own version of the credit score. Be sure that they offer your true FICO scores for all three credit bureaus. At myFICO.com, you can pay for just one score or all three scores. This might end up being more than you want to pay, but it is the "truest" way of figuring out your score.
Each of the three major credit bureaus have their own methods of determining credit scores.
Experian and their affiliates (for example FreeCreditReport.com) use either the FICO (version 2) scoring system or the PLUS score. Equifax, by comparison uses predominantly FICO scores, but sometimes uses BEACON scores as well. A credit report from Equifax is most likely to be true to your FICO score, since this is what they use - the standard FICO scoring system. Variations are infrequent and small, with scores tending to reflect the FICO score.
AnnualCreditReport.com uses the VantageScore system, which differs from the FICO and PLUS systems. However, the PLUS score should be fairly accurate; within 100 points or so. The difference is due to the slightly different formulas. VantageScore ranges from 501-990, rather than the FICO or PLUS scale, which ranges between 300-850.
There you have it - these are the ways which your credit score may be determined by the credit bureaus. Now that you know these credit bureau secrets, you'll be better prepared to take good care of your credit score and stay eligible to receive credit from lenders.
Since your FICO score is the one which creditors will be looking at when deciding whether to accept or reject your application, you should find out where your credit score stands by looking at the FICO website. This will give you a true snapshot of where your credit stands and why it is where it is.
Always be careful of the scam websites, any place with conflicting information, and the credit bureaus offering their own version of the credit score. Be sure that they offer your true FICO scores for all three credit bureaus. At myFICO.com, you can pay for just one score or all three scores. This might end up being more than you want to pay, but it is the "truest" way of figuring out your score.
Each of the three major credit bureaus have their own methods of determining credit scores.
Experian and their affiliates (for example FreeCreditReport.com) use either the FICO (version 2) scoring system or the PLUS score. Equifax, by comparison uses predominantly FICO scores, but sometimes uses BEACON scores as well. A credit report from Equifax is most likely to be true to your FICO score, since this is what they use - the standard FICO scoring system. Variations are infrequent and small, with scores tending to reflect the FICO score.
AnnualCreditReport.com uses the VantageScore system, which differs from the FICO and PLUS systems. However, the PLUS score should be fairly accurate; within 100 points or so. The difference is due to the slightly different formulas. VantageScore ranges from 501-990, rather than the FICO or PLUS scale, which ranges between 300-850.
There you have it - these are the ways which your credit score may be determined by the credit bureaus. Now that you know these credit bureau secrets, you'll be better prepared to take good care of your credit score and stay eligible to receive credit from lenders.
About the Author:
Home Buddies is a real estate investor credit repair coach. Starting with their free session for site visitors, Home Buddies develops and implements a customized strategy to improve credit and creates a business development strategy to help real estate investors or homeowners overcome problems to financing properties and building their portfolio.
posted by Debt Consolidation Loan at
10:42 AM
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