While consumers have free access to their credit reports, they have to pay for access to their credit scores. Given the current state of the economy, more and more consumers are checking their credit scores from a variety of websites. One problem – the scores that consumers can order may not be the one that their lenders or potential creditors are using.
There are a number of different credit scores in the marketplace.
The FICO score, developed by Fair Isaac, is the dominant credit scoring model in the industry. It is calculated based upon information in a consumer’s credit report regarding their debts and payment history. There is also the VantageScore which was created by the 3 credit bureaus in 2006 to compete with the FICO score. The VantageScore is available for lenders to purchase. Experian and Trans Union have ผลบอลสด also developed their own scores. Lenders can’t purchase Experian’s score but Trans Union’s score can be purchased by lenders.
When a consumer purchases their score from Experian, they receive Experian’s Plus score. At Trans Union, a consumer receives Trans Union’s score. Equifax gives consumers their FICO score when consumers purchase their score on Equifax’s website. There can be big gaps between a consumer’s FICO score and the other credit scores. Even FICO scores can vary as the company regularly updates the formula for calculating credit scores. Lenders can choose to buy the newer or older version of the formula. Some lenders buy the older version as it is cheaper.
If you are in the market for your credit score, your best best would be to obtain your score at http://www.myfico.com. It’s the most popular score used by lenders and will probably give you the score that your potential lenders will see.
Copyright @ 2010
Sonya Smith-Valentine is an Attorney and Identity Theft & Credit Expert. She is President of Sonya Smith-Valentine International, a company devoted to empowering students and consumers and educating corporations about protecting sensitive personal and financial information and understanding consumer protection laws.