WHAT DO THE DIFFERENT CREDIT RATINGS MEAN?

Staff Contributor

Your Credit Ratings Matter

You have heard it before. To get credit, you need to have credit. That being said, you also need to make sure that you have good credit. It can be a delicate balancing act as you obtain credit, build your credit rating, and maintain it. As you navigate the world of lending, debt and borrowing, you need to understand your credit ratings. They can have a major impact on your financial opportunities.

What Does it Mean to Have Different Credit Ratings

There are three, major credit reporting bureaus. Equifax, Transunion, and Experian acquire credit information for American consumers. As they acquire information about you, they give you a credit score. This score and reporting information is updated each month. As a result, your ratings will vary over time.

Why Do You Have Different Ratings from Each Credit Bureau?

In addition to changes that occur over time, your credit bureau ratings can vary between each agency. This is due to the fact that each bureau may have different information concerning your credit history. If you see major discrepancies, there is the possibility that one of the agencies has erroneous information. You will need to get in touch with the agency that is a matter of concern in order to remove any mistakes. You will be guided on the steps to take to clean up your credit report.

Your Scores Should be Similar

If each bureau has the same information, your scores should be within a close range of each other. Get your annual free credit reports to check the information from each agency. Make any corrections that are necessary. Your score will range between 350 and 800 points. You want to aim high. Use your credit rating information to get your credit score in top shape so that you will have more borrowing power with better terms.

 

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