Why Do I Have 3 Different FICO Credit Scores At The 3 Credit Bureaus?
Generally speaking, credit scores are regarded as the overall FICO score which is required as an eligibility criterion for something.
However, credit consumers do not grasp the concept of how FICO score derivation.
Plus, there are three uniquely different companies(Equifax, Experian and Transunion) that maintain your credit reports.
Therefore, these organizations may or may not have a light difference in your FICO score.
Sometimes, the difference is minor, and sometimes it is absolutely beyond a common man's comprehension level.
Experian always uses the "Experian or Honest Isaac Model" to calculate scoresfor credit rating.
Meanwhile, Equifax's credit scoring model is known as "The Beacon", and Transunion calls its credit score model, "Empirica".
The names suggest that every organization has its own way of maintaining a consumer's FICO score.
Other factors that affect or cause a difference in credit reports are;
Sometimes, they intentionally want to pend the approval process to ward off defaulters.
Such types of companies don't come up with a straight "NO" because of the bad rep factor.
It would be a good idea to get your free MyFICO credit score today to check the difference between each report.
However, credit consumers do not grasp the concept of how FICO score derivation.
Plus, there are three uniquely different companies(Equifax, Experian and Transunion) that maintain your credit reports.
Therefore, these organizations may or may not have a light difference in your FICO score.
Sometimes, the difference is minor, and sometimes it is absolutely beyond a common man's comprehension level.
Experian always uses the "Experian or Honest Isaac Model" to calculate scoresfor credit rating.
Meanwhile, Equifax's credit scoring model is known as "The Beacon", and Transunion calls its credit score model, "Empirica".
The names suggest that every organization has its own way of maintaining a consumer's FICO score.
Other factors that affect or cause a difference in credit reports are;
- Multiple identities; If a credit consumer signs up for loans and credits under different identities, his/her report will vary.
- Time factor; The free or paid FICO credit score reports are a result of the information that is submitted by lenders, inquirers, utility corporations, collection agencies and courts.
- Misrepresentation on Behalf of the Financial Institute; This is where you're encouraged to go for 3 free credit scores through a reliable online source.
The three credit score institutes will have different versions of scores because of the unlawful activities of the said consumer.
Once caught, the consumer is exposed to a strenuous legal activity that involves lawsuits, heavy fines, imprisonment and forced bankruptcy.
Hence, it takes 14 to 30 days for the most recent credit card or any other loan based activity to show up in FICO offices.
Seeing to this fact, don't get carried away with the shopping hype.
Ultimately, when the due payments will show up, you'll be sweating like a prom queen in boys' locker room.
It is to ensure that your credit activities are going in accordance to your consent and knowledge.
Sometimes, despite of having all the high-tech gadgetries, credit companies make accidents.
These "accidents" show up as an extremely low or highscore.
Once you've notified the FICO officials, they'll fix the error immediately.
Sometimes, they intentionally want to pend the approval process to ward off defaulters.
Such types of companies don't come up with a straight "NO" because of the bad rep factor.
It would be a good idea to get your free MyFICO credit score today to check the difference between each report.