Having Multiple Credit Scores - Which Scores Do Lenders Use?

Probably no other aspect of our life is financial so important and yet so wrong so many people like the difference between a credit report, credit score and FICO score.

your credit report the story, which tells the reader how many credit accounts (credit cards, mortgages, auto loans, department store, etc.) that are opened and closed over the past seven years, the maximum credit limit you had on each of these accounts, the percentage of use of each of these accounts, a number of late payments, if any, on each of these accounts. Credit reports are coded in a abbreviated so it is hard to read and understand the untrained eye.

Credit Reporting Bureau to collect information about you contained in your credit report. There are three major credit reporting bureaus in the United States - Equifax, Experian, and TransUnion. There are also dozens of regional offices and specialized credit reports that have collected financial information about you, even if you've never heard of them.

your existing creditors voluntarily supply some of this information to credit bureaus. For example, if you have more than 30 days late on your auto loan finance company will report late payments to the office. offices also have access to public records for information about civil judgments against you and bankruptcy filings. It is only very rarely, if ever at all, to become aware of the constant flow of information about your financial life.

credit score is a number typically between 300 and 850, that rates the credit information contained in the credit report at a particular moment in time. Points are calculated by complex mathematical formula, which is a closely guarded secret holds office for credit reporting, which generates a credit score. Each credit bureau has its own owner's mathematical formula.

Nobody except the company that owns the credit score formula does not know how it works. People can make good guesses, but nobody outside the company can know for sure exactly how your credit score is calculated.

FICO score is a score calculated by Fair Isaac Corporation. FICO scores are something special, because Fair Isaac is the king of the hill in the credit scoring industry in the Untied States, and probably in most other countries in the English speaking world too.

only Fair Isaac Corporation, or the company that licenses Fair Isaac's scoring algorithm can provide you with your FICO score. Clothes that you see on those TV ads you can sell something that can legally be called a credit score, but it's not the FICO score. The difference could become very important when you apply for a loan and get one free credit scores you get for $ 9.99 a month are not nearly the same as your FICO score that your lender looks at.