In matters concerning your credit score, detail is utterly important. A credit score is another important characteristic that affects your creditworthiness for loans, credit cards, mortgage loans, etc. A credit score is a very sensitive aspect that even when you have a slight shift to a lower score, then you find yourself qualifying for different loans and various interest rates. Thus it is still deemed relevant to regularly pay attention to credit score and know where to get the most accurate score.
There are several dominant consumer credit scoring models present in the United States market. There is one primary model in use today, namely the FICO Score, which is an acronym for the Fair Isaac Corporation. It should also be noted that there is not one single FICO Score, but rather there are different versions that are calculated from slightly different information in the credit bureau files. The three companies that report credit information on consumers include Equifax, Experian, and TransUnion. All three credit reference agencies collect your credit history or record, payment record, and credit card balance among other factors to come up with your score using the FICO model.
Because the FICO Score is based on the information in your credit report from one of the three credit bureaus, Equifax, Experian, or TransUnion, there may be slight variations in the scores when using each bureau. Fortunately, you may find that there are only minor differences between these three FICO Scores and that they are usually quite similar for most individuals. The statistical analyses show that 90% of consumers’ FICO Scores vary by less than 50 points across the different bureaus, as reported by FICO.
In addition to the FICO Score models, the FICO Score –is specific to industries and types of credit used to make decisions regarding auto loans, bank cards, mortgages, etc These may differ more greatly from your base FICO Score, as they are more specific to each category. There is, for instance, the VantageScore model which is a product of the three major credit bureaus as a rival to FICO Score. It is known that the VantageScore, which grades creditworthiness, is very similar to the credit scoring system and is used by some lenders. However, it does not enjoy the same level of use in the financial industry as the reliable FICO Score which is used across the United States.
When it comes to determining the most accurate credit score provider, there are two that are considered the best - FICO and Experian. I suggest using Experian particularly because Experian is recognized to be the biggest credit reporting agency that FICO compares scores with. Experian now has credit data of over 220+ million consumers and 24 billion trade lines; this is the largest database of credit records that FICO uses to create scores. This makes the Experian FICO Score the most inclusive picture of where your credit sits with credit providers.
With the official FICO Score from Experian, you receive the score that lenders are likely to consider when reviewing your requests. Subscribing to Experian credit monitoring services also offers other features that include daily credit reports and the score whenever it is altered. This way, it will be possible to monitor your credit score accuracy as observed by the industry leader with ease.
Overall, the three big credit reporting agencies offer quite similar scores with a slight preference for Experian for the most accurate FICO Score. Since the credit database of Experian contains a wealth of information, your FICO Score that originated from Experian represents the closest estimate of how your creditworthiness will be perceived by lenders for the new lines of credit. Signing up for monitoring by Experian provides credit score reliability and timely score changes by the leader in consumer credit information.
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