Having Multiple Credit Scores – Which Scores Do Lenders Use?

Possibly not another aspect of our financial life is very significant, but many people misinterpret it as the main difference between a credit report, a credit score and a FICO score.

Your credit report is a narration, a tale that shows readers how many accounts you have opened and closed in the last seven years; how many credit accounts you have been able to use on all the credits, how many uses each accounts will have; how many late fees will be, if any, on any of the accounts. Credit reports are coded in abbreviations such that the untrained eye is difficult to read and understand.


All the data found in your credit report is gathered by credit reporting offices. Three big credit reporting agencies are based in the United States – Equifax, Trans Union and Experian. Furthermore, you are gathered financial information even though you haven’t heard of them through hundreds of specialist and regional credit reporting offices.

Any of this details was given voluntarily by the current creditors to the credit offices. If, for example, the financial firm announces your late payment at the office, if you have much more than 30 days late on your car loan. Office files on civil judgments and bankruptcy documents are also open to the public office. It is very unusual, if anything, to see this on-going flow of information about your financial life.


A credit score is a number that scores the credibility of the details contained in a credit report at a certain moment between 300 and 850. A complex mathematical model, which is a tightly kept secret maintained by the credit reporting office generating the credit value, estimates the score amounts. There is an exclusive mathematical formula in any credit office.


Nobody knows the way it operates but the organisation that has a credit score form. Individuals can make excellent assumptions, but nobody in the company can know for sure how the credit score is measured.

Also to know more : Learn about highest credit score.

A FICO Score is a Fair Isaac Company measured score. FICO scores are very special, since Fair Isaac may be a king of the hill in the credit score industry in the U.S. and possibly even in many other places in the world of English speaking.


The FICO Score can only be given by Fair Isaac Corporation, or maybe a business licencing the Fair Isaac scoring algorithm. Outfits that can be seen on these TV commercials can sell you something, but it’s not the FICO score they can call a credit score legally. If you apply to a bank loan and hear about the free credit scores for 9,99 $a month, it may be incredibly important to have a difference that isn’t exactly the same as the FICO scoring of your loan.

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