Who is Responsible For Rating Credit Scores?
When you set out to fix your credit, a good thing to do at the start would be to get a copy of your credit score.
This will be an easy way for you to keep track of things as you progress.
But there are a lot of different credit scores available to you, so how do you know what to purchase? With credit lenders, there is only one type of score that they use, and that is the FICO score.
FICO stands for Fair Isaac Corp, which is a company that specializes in analyzing risk predictions.
Lenders see this model as the most efficient means of assessing the risk tolerance involved with lending money.
So it would be a good idea to get a hold of the same scores that a potential lender would see the next time you apply for a loan in order to track your progress.
There are three credit agencies that sell these scores to lenders, and only lenders, as they do not sell them to the average citizen.
The credit agencies decided they did not want to take part in the consumer market with Fair Isaac, so imitation credit scores were created to sell to the average person.
This is a deceitful marketing ploy, however, as thousands and thousands of people buy these scores every single day, not realizing they are not the same thing as what credit lenders are using.
Many people have applied for loans knowing only the credit rating of one of the three credit agencies, only to find out that the other agencies scores were dramatically different.
And the one they were sold almost always turns out to be very much inflated compared to their actual credit score.
Nearly all credit lenders check a potential borrower's score with all 3 credit agencies, so just having just one score is not the best gauge to see how you are doing with fixing your credit.
So it's best to purchase all 3 of your credit ratings.
You can't get them from the credit agencies themselves however you can buy them directly from Fair Isaac.
This will be an easy way for you to keep track of things as you progress.
But there are a lot of different credit scores available to you, so how do you know what to purchase? With credit lenders, there is only one type of score that they use, and that is the FICO score.
FICO stands for Fair Isaac Corp, which is a company that specializes in analyzing risk predictions.
Lenders see this model as the most efficient means of assessing the risk tolerance involved with lending money.
So it would be a good idea to get a hold of the same scores that a potential lender would see the next time you apply for a loan in order to track your progress.
There are three credit agencies that sell these scores to lenders, and only lenders, as they do not sell them to the average citizen.
The credit agencies decided they did not want to take part in the consumer market with Fair Isaac, so imitation credit scores were created to sell to the average person.
This is a deceitful marketing ploy, however, as thousands and thousands of people buy these scores every single day, not realizing they are not the same thing as what credit lenders are using.
Many people have applied for loans knowing only the credit rating of one of the three credit agencies, only to find out that the other agencies scores were dramatically different.
And the one they were sold almost always turns out to be very much inflated compared to their actual credit score.
Nearly all credit lenders check a potential borrower's score with all 3 credit agencies, so just having just one score is not the best gauge to see how you are doing with fixing your credit.
So it's best to purchase all 3 of your credit ratings.
You can't get them from the credit agencies themselves however you can buy them directly from Fair Isaac.