What Does It Mean To Have 3 Credit Scores?
This segment of Credit FYI is brought to you by FreeScore.com.
I was talking to a young couple recently, Mike and Jessica, and they asked me what it means when people talk about having three credit scores. This is really important if you want to take control over your credit. There are three credit reporting agencies. Monitoring these credit reports is critical. These agencies are TransUnion, Equifax, and Experian. Each of these providers can, and do, put out different scores. These scores are different because they use different formulas, so even though the information may be similar, they're weighting information differently, and that ultimately produces different credit scores. The other thing to know is that your creditors don't have to report to all three agencies; they may only report to one, so you can see how your score can be significantly different amongst the three different credit agencies. The bottom line from CreditFYI, three things: make sure that you're monitoring your three credit reports at three different agencies, and understanding your three different scores.
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