3 Credit Scores – The Measure Of Your Creditworthiness

We can borrow money from lenders, but the lenders would want to ensure that we have high credit worthiness.  All that the lender needs to ensure is that they will get their money back before the loan is approved.  Lenders can get to know about the borrowers with the help of credit bureaus who maintain all the necessary records.  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.  This score is very important because the lender can understand how wise it would be to issue the loan to that person.  Actually there are 3 free credit scores all over the US and you would do well to know more about them.

There are three separate American credit bureaus.  The three major credit bureaus are the Experian, the TransUnion and the Equifax.  Each of them performs a statistical analysis of individual credit data, and comes up with a credit score.  The credit worthiness of the borrower is reflected by this credit score.  For calculating individual credit scores, separate methods are taken up by these three credit bureaus.  As a result, the individual conclusions of these 3 agencies are often not the same.  A software that is automated calculates the credit score.  This software has been designed and made operational by the Fair Issac Corporation (FICO).  Hence, credit scores are also known as FICO scores.

All the three credit scores are combined in the full credit report.  Apart from these three credit scores, each of the bureaus also calculate the VantageScore separately.  Generally, VantageScore can assume any value between 501 and 900.  The FICO credit score varies between 300 to 850.

If you want to know what your score is, you can do this and that too free.  There are many credit report monitoring services of the credit bureaus, and you will need to subscribe to any one of them.  The credit bureaus supply this information to the lenders as well so that they can arrive at a conclusion as to your credit worthiness.  Actually this is what the lender considers when deciding whether to approve the loan or reject it.

Why is it important for you to find out what your credit score is?  That is because, it is possible that there is an error in the report.  Your credit report may be there for as long as 7 years and so you have to verify about its accuracy for your benefit.  So go ahead and find out how you can get your three credit scores and also learn whom to approach for this.  Yes, this information is absolutely essential for you.

Please visit www.ThreeFreeCreditScoresOnline.com where you can get access your credit scores and reports from all the bureaus.

How To Approach The Bureaus And Find Out What Your Credit Score Is

Loan issuing authorities receive a large number of requests, and they take a final decision based upon many considerations.  Your credit worthiness is a crucial factor here that the lender will need to know so that the correct decision can be arrived at.  Your credit score is an important determinant of your credit worthiness.  Your answer to the question “can I check my credit score?”  is a yes because you have every right to do this.  Yes it is very important that you do so and that is for a number of reasons.

There are quite a few credit bureaus in America, and they pass on a person’s credit information to a lender.  Three of the major US credit bureaus are the Experian, the TransUnion and the Equifax.  However these bureaus all work independently when calculating the credit score of a person.  And that is why, the credit score can differ from one bureau to another.  Credit scores from the different credit bureaus generally differ, and this is because the way they calculate are all different.

If you are like me, you should always check my credit score before making that loan application.  However you will have to know where to approach and how to access this score as there are specific procedures.  Remember, all the three bureaus provide individual credit scores.  Remember to check your credit score because you do not want an error there.

You are allowed to request information about your credit score.  No, there is no need to pay any money for the information about your credit score.  Do you think that there is nothing in the report – you should still ask for it.  There are 3 separate bureaus, and you should try to find out your score from them all.  Credit reference agencies supply the same information to the lenders as well.  Lenders can, armed with this information accept or reject your loan proposal.

If your loan application has been rejected, you should immediately find my credit score.  However the fact remains that, this checking should always be made before you are placing that application.  It is possible that there was a single default, after which your financial condition has improved but since your record may be held for up to even 7 years, the authorities might still hold this negatively.  And thus what they will show in the records is inaccurate and you naturally have to bring this to their attention.