![]() ![]() No matter what you are buying – a home, a car or charging items on your credit card – lenders and other creditors use a credit score to assess the amount of risk they will be taking by lending you money. If the lender's score is lower than your VantageScore 3.0, it is possible that this difference can lead to higher interest rates and sometimes credit denial.With various advertisements telling consumers how to access their credit score, how is a person supposed to know what score is the “real” score? Michigan State University Extension encourages consumers to educate themselves about their finances, particularly their credit report and credit score. For some consumers, however, the risk assessment of VantageScore 3.0 could vary, sometimes substantially, from a lender’s score. Just remember that your associated risk level is often the same even if the number is not. (And your VantageScore 3.0 may differ from your score under other types of VantageScores). Your lender may not use VantageScore 3.0, so don't be surprised if your lender gives you a score that's different from your VantageScore. There are different credit scoring models which may be used by lenders and insurers. Different credit scoring models can also give a different assessment of the credit risk (risk of default) for the same consumer and same credit file. Since the information in your file can change over time, your credit scores also may be different from day-to-day. So your credit scores can vary if the information they have on file for you is different. Your credit file information can vary from agency to agency because some lenders report your credit history to only one or two of the agencies. Credit scores are based on the information in your credit file at the time it is requested. There are three different major credit reporting agencies, Experian, TransUnion, and Equifax that maintain a record of your credit history known as your credit file. A lower score indicates to lenders that you may be a higher credit risk. Higher scores represent a greater likelihood that you'll pay back your debts so you are viewed as being a lower credit risk to lenders. VantageScore 3.0 is used by some but not all lenders. VantageScore 3.0, with scores ranging from 300 to 850, is a user-friendly credit score model developed by the three major nationwide credit reporting agencies, Experian ®, TransUnion ®, and Equifax ®. Your VantageScore 3.0 from Experian indicates your credit risk level and is not used by all lenders, so don't be surprised if your lender uses a score that's different from your VantageScore 3.0. *Calculated on the VantageScore 3.0 model. ![]() Address changes – Address updates reported to the bureaus.Public Records – Types of records reported in your name, including federal bankruptcy records, state and county court records and monetary judgments, and in some states, overdue child support records.New Accounts – Reported credit accounts, loans, etc.Potentially Derogatory Information – Past due credit accounts, collection agency accounts and charge-off credit accounts reported to the credit bureaus.Hard Inquiries – Entities that have requested a copy of your credit report to process an application for credit.Personal Information - Name, alias, date of birth etc.Daily credit report monitoring for your Experian credit report keeps you informed of important changes to your credit file such as: Whether you initiated the activity or not, it’s important to be notified of changes so that potential fraud can be addressed immediately. ![]() Experian ® credit monitoring helps detect activity on your Experian credit report. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |