Why are my credit score different between credit bureaus?
When credit reports were first developed, they were mostly listings of each individual consumer’s credit activity. Since that information required substantial analysis, and was often subjective, the bureaus began to develop credit scores. These were an attempt to reduce an otherwise complicated credit profile down to a single number. Credit scores are calculated based on several factors. Payment history is the most obvious, but also considered are credit utilization (the amount you owe compared to your total lines of credit), the number of credit lines you have open, the age of your credit, and the number of recent inquiries for new credit. All that information is collected and analyzed according to proprietary algorithms that produce your credit score.
The most popular credit score is the FICO score, which is the one used by most lenders. FICO scores can range between a low of 300 and a high of 850. Poor credit is generally considered below 600, while average or fair credit is between 600 and 700. Good credit is usually anything higher than 700, and excellent credit starts at least at 750. How high your credit score is will determine whether you’ll be approved for a loan, and what interest rate you’ll pay.
Each of the three major credit bureaus issues its own credit scores. Since the information is a little bit different on each credit report, the specific credit score will be a little bit different from one bureau to the next. That’s true even if each bureau uses the same credit scoring method. Also understand that not all creditors report to all three bureaus. If a collection shows up on Experian, but not the other two bureaus, your Experian credit score will be lower than your TransUnion and Equifax scores. By knowing your credit score, you can do what’s necessary to keep it at a healthy level. That naturally requires making your payments on time. But it’s also possible your credit score could be dragged down by information reported in error. For example, there may be a collection balance reported that you actually paid. By identifying such activity on a regular basis, you’ll be able to fix it before it becomes a problem.
Here at Credit Services of America we work with all three credit bureaus making sure that we work very hard all those negative accounts that are affecting your credit score. We personalize our disputes for better results and making every round of dispute about our client’s credit needs.
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for details and to discuss your own individual situation.