THREE MAJOR CREDIT BUREAUS AND SCORING

Staff Contributor

When it comes to getting your credit score, there are three major credit bureaus in the United States. Experian, Transunion and Equifax acquire your credit information, generate credit reports and give you a score. You can expect a difference in scores, depending on the agency.

This can have a major impact on you depending on the source potential lenders will use to give you a loan. You could be denied or find that your terms are not so positive if financial institutions use a less favorable score as a basis for decisions that relate to you.

Why Your Report Varies from Bureau to Bureau

When it comes to your credit score, it can range from 350 to 800 points, 800 being the optimal level that you can achieve. Each credit bureau will give you a score.

However, it can differ depending on what information they have about your credit. If they have the same information, you should expect scores that are either identical or very close to each other.

If you find glaring differences, look at your reports from each credit reporting agency. There could be errors that need to be corrected. Take care of any problem areas and your reports should be on track.

Know that Your Scores Can Change

Over time, you can expect your credit scores to change as they are reported by each bureau. With every change in your financial situation and credit history, from paying debts early to going into default, your credit score will fluctuate.

Each credit bureau updates your score on a monthly basis. You need to be aware that the decisions you make today can affect your finances tomorrow.

Make wise choices, repair errors from the past, and you can put yourself in solid, financial standings in the future.

 

 

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