Most creditors (around 90%, in fact) make their decisions about extending credit based on credit scores from one organization - this is FICO, or the Fair Isaac Corporation.
It's a good idea for you to get your credit scores from the FICO website, because your FICO scores are the ones that most lenders will use to base their acceptance of your credit application. You need to get an accurate picture of what is going on with your score and what is causing it to be as it is.
There are scams out there, so be careful and steer clear of these. There are also many places which will have conflicting information and of course all of the credit bureaus will also have their own credit scores for consumers. There are various systems for determining credit scores and many websites which will offer you the opportunity to get your credit report; but you want to be sure that they will also provide you with your FICO scores from all three of the major credit bureaus. You can buy just one score or all three at myFICO.com. While you will have to pay by the score, this is the best way to find out exactly where your credit score stands.
Each of the three major credit bureaus have their own methods of determining credit scores.
Experian and their affiliates (such as FreeCreditReport.com) will likely use a PLUS score or the FICO version 2 scoring system. Equifax actually uses FICO scores most of the time or the BEACON. If you order a report through Equifax, like their 3-in-1 report, you're less likely to notice large variations elsewhere because they use the FICO score. TransUnion usually uses the FICO classic scoring system. There seem to be a few variations and some are closer to FICO scores than others.
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.
It's a good idea for you to get your credit scores from the FICO website, because your FICO scores are the ones that most lenders will use to base their acceptance of your credit application. You need to get an accurate picture of what is going on with your score and what is causing it to be as it is.
There are scams out there, so be careful and steer clear of these. There are also many places which will have conflicting information and of course all of the credit bureaus will also have their own credit scores for consumers. There are various systems for determining credit scores and many websites which will offer you the opportunity to get your credit report; but you want to be sure that they will also provide you with your FICO scores from all three of the major credit bureaus. You can buy just one score or all three at myFICO.com. While you will have to pay by the score, this is the best way to find out exactly where your credit score stands.
Each of the three major credit bureaus have their own methods of determining credit scores.
Experian and their affiliates (such as FreeCreditReport.com) will likely use a PLUS score or the FICO version 2 scoring system. Equifax actually uses FICO scores most of the time or the BEACON. If you order a report through Equifax, like their 3-in-1 report, you're less likely to notice large variations elsewhere because they use the FICO score. TransUnion usually uses the FICO classic scoring system. There seem to be a few variations and some are closer to FICO scores than others.
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.
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