Who are the main Fico score and credit companies?
Answer: Experian, Transunion, Equifax
What is the difference between the Equifax Credit Score™ and the FICO® Score?
Both the Equifax Credit Score and the FICO Score are general-purpose score models used to predict credit risk. The Equifax Credit Score is a proprietary model created by Equifax. The FICO Score is a proprietary model created by Fair Isaac Corporation (FICO) . All Equifax consumer services and tools make use of the Equifax Credit Score unless otherwise indicated.
The Equifax Credit Score uses a numerical range of 280 to 850, where higher scores indicate lower credit risk. The FICO Score uses a numerical range of 300 to 850, where higher scores also indicate lower credit risk.
The Equifax Credit Score can be used to calculate a score for not only your Equifax credit file, but also your Experian and TransUnion credit files. This gives you the ability to compare your credit scores across all three credit reporting agencies, which can be useful in understanding your credit.
Though both score models predict similar types of risk, it is important to remember that because they were created independently by separate companies, they should not be expected to deliver identical scores. In some cases, an Equifax Credit Score and a FICO Score calculated at the same point in time may be similar. However, in some scenarios the scores may differ, perhaps significantly, based on how the different models calculate risk. Referenced:
https://help.equifax.com/s/article/What-is-the-difference-between-the-Equifax-Credit-Score-and-the-FICO-Score
Experian
They offer monitoring and additioanl education related to mortages, please see the following link:
https://www.experian.com/blogs/ask-experian/category/personal-finance/mortgage/
Transunion
What is a credit score?
Financial matters can be complicated, but understanding your credit score doesn’t have to be. If you have any credit accounts, such as credit cards or loans, you have a credit report. Your credit report is a record of how you manage your money. This data is then distilled and calculated to create your credit score. While lenders use these reports and credit scores to decide whether or not to extend you credit, it leaves a lot of room for interpretation.
Reference: https://www.transunion.com/credit-score
How is my credit score calculated?To see how it all breaks down, here’s an example of how most scores are calculated. Your payment history generally makes up 40% of your score, while credit utilization is 20%. The length of your credit history contributes 21%, and total amount of recently reported balances 11%. Finally, new credit accounts are responsible for 5% while your available credit makes up 3%. All of these values are then broken down into a credit score, which typically ranges between 300 and 850—the higher the number the better. TransUnion’s credit score check can let you know where your score falls.
Reference: https://www.transunion.com/credit-score
What affects credit scores the most?Your payment history is the most important aspect of your credit score, because it shows how you’ve managed your finances, including any late payments. Your credit history is also very important, as it demonstrates how long you’ve been managing your accounts, when your last payments were made, and any recent charges.
Reference: https://www.transunion.com/credit-score
What is my credit mix?Your credit mix refers to the different types of credit you have, such as credit cards and mortgages. In addition to your credit mix, the number of accounts you have will also influence your score.
Reference: https://www.transunion.com/credit-score
Will my score be the same at all three credit bureaus?The three major credit bureaus—TransUnion®, Experian and Equifax—are responsible for collecting and maintaining consumer credit reports in the U.S. These reports are then provided to subscribers, such as landlords, mortgage lenders, credit card companies and others who are deciding whether or not to extend you credit.
Reference: https://www.transunion.com/credit-score
It can be confusing when your score seems high but you still get denied for a new line of credit. Chances are you’re not looking at the same score as your bank or finance company. Subscribers don’t work with every credit reporting agency, so the credit report information included in one report might be slightly different from that in another.
Reference: https://www.transunion.com/credit-score
Check your credit scores and reports from each bureau annually to ensure all the information is accurate. By law, you’re entitled to one free annual credit report. You should also use a credit monitoring service year-round. TransUnion offers some of the latest and most innovative credit monitoring services, like Credit Lock and Instant Alerts. These services will help you spot inaccuracies, potential fraud and other blemishes that could lead to higher interest rates.
Reference: https://www.transunion.com/credit-score
Understanding Your Credit ProfileDetermining your score is more complicated than just weighing the different aspects of your credit history. The credit scoring process involves comparing your information to other borrowers that are similar to you. This process takes a tremendous amount of information into consideration, and the result is your three-digit credit score number.
Reference: https://www.transunion.com/credit-score
Remember, no one has just one credit score, because financial institutions use more than one scoring method. For some agencies, the amount owed may have a larger impact on your score than payment history.
Reference: https://www.transunion.com/credit-score
What personal details do not affect my credit score?Now that you have an idea of what goes into your score, it’s good to know what doesn’t factor into your score. A recent survey from the Consumer Federation of America found that out of 1022 adult respondents, 40% believed marriage status influenced credit scores, while 43% thought age also played a part.
Reference: https://www.transunion.com/credit-score
Your score is a representation of how you manage financial responsibility, not a testament to you as an individual. Things like age, ethnicity, religion and marital status are excluded in the calculation of your score. Your employer, salary and occupation are likewise not included in the equation.
Reference: https://www.transunion.com/credit-score
Maintaining Healthy CreditA credit reporting agency needs a track record of how you’ve managed credit before it can calculate a credit score. Typically, six months’ worth of activity will provide enough information to generate a score. As your credit history increases, your score might rise or fall based on how you pay your bills over time.
Reference: https://www.transunion.com/credit-score
Check your credit score regularly with a monitoring service, but don’t let minor fluctuations stress you out. Your credit score is just a snapshot of how you’re managing your credit at a particular moment in time. Paying your bills on time, maintaining low balances and not taking on too much debt can help to rehabilitate your credit profile, resulting in a higher score.
Reference: https://www.transunion.com/credit-score
Equifax
What is the difference between the Equifax Credit Score™ and the FICO® Score?
Both the Equifax Credit Score and the FICO Score are general-purpose score models used to predict credit risk. The Equifax Credit Score is a proprietary model created by Equifax. The FICO Score is a proprietary model created by Fair Isaac Corporation (FICO) . All Equifax consumer services and tools make use of the Equifax Credit Score unless otherwise indicated.
The Equifax Credit Score uses a numerical range of 280 to 850, where higher scores indicate lower credit risk. The FICO Score uses a numerical range of 300 to 850, where higher scores also indicate lower credit risk.
The Equifax Credit Score can be used to calculate a score for not only your Equifax credit file, but also your Experian and TransUnion credit files. This gives you the ability to compare your credit scores across all three credit reporting agencies, which can be useful in understanding your credit.
Though both score models predict similar types of risk, it is important to remember that because they were created independently by separate companies, they should not be expected to deliver identical scores. In some cases, an Equifax Credit Score and a FICO Score calculated at the same point in time may be similar. However, in some scenarios the scores may differ, perhaps significantly, based on how the different models calculate risk.
Referenced: https://help.equifax.com/s/article/What-is-the-difference-between-the-Equifax-Credit-Score-and-the-FICO-Score
If you have any information you feel should be updated please email me James@Outlandinc.com or comment down below.
Thank you,
James Outland Jr.