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Why do Credit Bureaus Rate Your Credit Score Differently?

Credit Bureau reporting agencies look at the individual's credit worthiness and history. The individual's credit report will show the ability to pay the loan, amount of credit used, current outstanding debt and payment history. The calculation formula that might be used is: financial history, assets and liabilities.

Different Credit Bureau reporting agencies generally use the FICO scoring system. It is the most widely know type of credit score. The term FICO is a registered trademark of Fair Isaac Corporation. FICO credit scores are a in depth analysis of available credit data.

Credit Bureau reporting agencies score the individual's credit report with three numerical scores. An example might be: 700 698 800.

These numbers represent the individual's credit history. The individual's average numerical score would be 698. Numerical scores represent the individual's credit history for payments made on time and/or any payments made late within a 30-60-90 billing due date period with the particular financial institution, landlord agreement, cellular phone or credit card company.

Each major Credit Bureau reporting agency has its own scoring models to evaluate the credit history of a individual. Each model used represents the individual's past and current credit status. This explains why a individual may find different numerical scores on their credit report.

Generally, these numerical scores from each Credit Bureau, are not to far off from each other.

Free credit reports can be requested within in 12 month period. To access a free credit report. The individual can request one on-line, regular postal mail or on the telephone.

If requesting a credit report on-line, it can be accessed immediately. When requesting by telephone, the time is about 15 days. When requesting by mail, upon receipt of the signed application. It is about 15 days.

Individual's who are looking to open a charge account, borrow for a personal loan, or a mortgage from a Financial Institution should be at least aware of their credit report score rating.
 

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