Three Free Credit Scores – Information To Help You Know About The Credit Score Maintaining Authorities

In FICO credit score of Advisor (March 31, 2009 10:38 am)

We can borrow money from lenders, but the lenders would want to ensure that we have high credit worthiness. Prior to lending out the money, the lender has to ensure that you will be able to repay the money. Credit bureaus have been set up for the flow of information about borrowers to lenders. The bureaus have access to the credit history of a person and by analyzing this, they come up with the person’s credit score. The risk attached to extending a loan to that person is indicated by the credit score figure. When the credit score is high, the lender can know that it is relatively safe to issue the loan. Planning to apply for a loan – get informed about these 3 credit scores.

The US has three major 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. However the three credit bureaus may adopt different methods to calculate a person’s credit scores. Hence, it is not uncommon that the findings may not be the same. An automated software is used for calculating the credit score. This software has been designed and made operational by the Fair Issac Corporation (FICO). There are those who thus also call them FICO scores.

In an individual credit report, all these three credit scores are considered to come to a conclusion. The bureaus also separately calculate the VantageScore, in addition to the 3 credit scores. 501-990 is the range in which VantageScore hovers. Broadly, the FICO credit score remain in the range 300-850.

If you want to know what your score is, you can do this and that too free. However this will become possible only once you have subscribed to one of the several credit monitoring system of the bureaus. This credit report data is also what the lenders get to find out whether you are credit worthy or not. These credit scores are crucial when it comes to accepting or denying the loan application.

Why is it important for you to find out what your credit score is? The fact is, there can often be errors in it. Individual credit reports are maintained sometimes even for up to 7 years, and so you should find this out for your benefit. So go ahead and find out how you can find out about your 3 credit scores and also learn whom to approach for this. You must definitely have the information about this.

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