Credit score and reporting confusion?
Posted in Personal Finance on 03/01/2010 04:46 pm by admin
majax79 asked:
Are the credit scores that I buy from the 3 main reporting agencies the same scored that would be reported to a company?
Are the credit scores that I buy from the 3 main reporting agencies the same scored that would be reported to a company?
How can reporting agencies use different scoring systems and report different stuff in different places…or not at all?
How is this fair to the consumer?
Wow, the “life isn’t fair” answer.
I expect a better answer from someone at level 6.
RALPH
03/02/2010 at 1:24 am
RORY
It’s not fair, but nothing in life is.
The score that they show you isn’t the same score they show a mortgage company either.
03/04/2010 at 1:00 am
JEROME
You can ask for a free credit report from each of the big 3 at the official site mandated by the government, no strings attached. You’ll see all the accounts that are contributing to your credit scores. Since companies report for their clients, the reports may reflect different information. If anything is inaccurate, you can request that they correct it and put a note on your record. See link below.
03/05/2010 at 8:50 am
VAN
Well with equifax the answer is yes… but with the other 2 companies the answer is no and your score can and will vary greatly. Its not fair to consumers and I wish someone would sue them over it…..
03/05/2010 at 11:27 pm
ALEJANDRO
*is not a level 6 only 4..hehehe
No they aren’t, those 3 scores are estimates, but in my experience typically very close IE within 10-20 points.
What is most important about sites like freecreditreport.com is that they tell you how to improve your credit IE have a card out for how than 3 years in good standing (IE no or very few late payments in the past and no unpaid debts currently), take out more loans with now late payments in the form of mortgages, don’t carry too many credit cards, get cards with high limits but stay far below such limits (never get over 35% of the credit limit)….That and, of course, don’t carry too many credit cards as this makes the record holders suspect you are more likely to go under on at least one card and/or be using the cards to pay off each other.
In general the rule is try to earn your way to around 775 or more. If you are in that ballpark, even if some odd credit system rates you 10 points lower, you are still going to get the best rate, period.