How Can You Find Out Your True Credit Score?
November 6th, 2014 | Author: Megan Eisenhower
[Y]ou’ve probably heard about all of the different credit scores that you have. You have one score from Experian, another from Equifax and a third one from TransUnion. Not to mention the fact that an insurance company will get a different score than a car lender or mortgage broker would.
With all of these numbers running around, how can you find out your true credit score?
Not Just One Number
The fact is that your credit score is not just one set of numbers. Each creditor uses its own algorithm to determine a credit score that it will use to deny or approve applications. One creditor may be more worried about people with collections while another creditor places more importance on the amount of outstanding debt. That is why you can have the same report pulled from the same credit bureau and end up with a different credit score by two creditors.
Don’t Get Frustrated
Before you get frustrated and give up on improving your credit score, know that it is just an indicator of your credit health. It is not some magic number
that you must constantly watch. Find out your credit score and use it as a gauge for how much work you must do to improve your credit rating. If your score is 595, don’t focus on the fact that it is 25 points away from 620 – the minimum many lenders accept to extend credit.
Instead, focus on the fact that you need to work to increase your score and look for ways you can do that. If you do nothing but pay your bills on time, your score will gradually go up. To increase it even faster, try to pay down any credit balances you have. If you have no open accounts in good standing, consider getting a secured card to improve your score in a few months.
The One Credit Score
If you are interested in one credit score, you may want to find out your FICO score. It is a combination of your three credit scores and many mortgage lenders use it to determine if you qualify for a home loan. At the same time, not all lenders use this number so don’t stress out about trying to find the true credit score that will tell you exactly where you rank.