3 Credit Scores - Information To Help You Know About The Credit Score Maintaining Authorities

Posted by Credit expert

March 31, 2009

When we wish to borrow money, our credit worthiness needs to be high. All that the lender needs to ensure is that they will get their money back before the loan is approved. Credit bureaus have been set up for the flow of information about borrowers to lenders. These bureaus study the past credit data of a person and comes up with a credit score. The credit score is thus nothing but a figure that shows how credit worthy that person is. The risk associated with a loan goes down considerably with an increase in the credit score. Planning to apply for a loan – get informed about these three free credit scores.

There are three major credit bureaus in the United States. The three major credit bureaus are the Experian, the TransUnion and the Equifax. These bureaus measure the individual credit scores by analyzing past credit history and giving a score. The credit score is essentially an indication of the credit worthiness of the borrower. Different techniques are however often taken up for calculating the credit score by these three credit bureaus. Hence, the 3 reports can differ in their findings. An automated software is used for calculating the credit score. The Fair Issac Corporation (FICO) has made this software. Hence, credit scores are also known as FICO scores.

All the three credit scores are combined in the full credit report. The bureaus also separately calculate the VantageScore, in addition to the three free credit scores. The VantageScore ranges between 501 and 990. The range of the FICO credit score is 300 to 850.

The good news is, you will be able to have access to your credit score, and you will not have to pay anything for this. For this, you will need to subscribe to one of the several credit report monitoring systems of the credit bureaus. Such information about a person is also provided to the lender who can thus take a knowledgeable decision. Actually this is what the lender considers when deciding whether to approve the loan or reject it.

But why for all reasons should you know what your credit score is? The fact is, there can often be errors in it. Often the agencies would maintain your credit report for even up to 7 years and so you should definitely verify that the report is accurate. And thus, you should find out where to approach for your three credit scores and also how to do it. You must definitely have the information about this.

Uncategorized

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.