Credit Score Companies....

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trd01
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Credit Score Companies....

Postby trd01 » Thu Apr 02, 2009 1:14 pm

Hey guys, I have a few questions.

How come Experian, Equifax and Transunion have different scores?

When you apply for credit cards, loans and so and so, Do they go based on all 3 scores or is there something in particular they look more at in one of the 3 credit score company?

Last Question: I know the 3 companies work independently but why they scores from Equifax and Experian are way higher than Transunion and Equifax and Experian are always close in the scores?


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fffresh
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Postby fffresh » Thu Apr 02, 2009 9:23 pm

How come Experian, Equifax and Transunion have different scores?


They each have their own algorithm for scoring. I don't necessarily think that's a good idea but it does have a couple advantages.

When you apply for credit cards, loans and so and so, Do they go based on all 3 scores or is there something in particular they look more at in one of the 3 credit score company?


Usually the creditor works with one or two credit bureaus they work with. Since the credit records are similar, any of them should work. Most of the time a credit card company checks one bureau, maybe two. I've never heard of them checking all 3 credit scores from every credit agency.

Last Question: I know the 3 companies work independently but why they scores from Equifax and Experian are way higher than Transunion and Equifax and Experian are always close in the scores?

The Transunion scoring system goes on a higher range, generally speaking. I know this is confusing, because one would think they would all operate on the same numerical range for simplicity. Personally, I would favor them all operating on the same algorithm and score range.

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scorch
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Postby scorch » Fri Apr 03, 2009 10:54 pm

Supposedly,from what I've heard, baddies such as bankruptcy, unpaid judgment, chargeoff/paid judgment, collection and late-pay, recent account opened, and aged accounts changes the formula used to determine your FICO score.

bozell
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Postby bozell » Sun Apr 05, 2009 3:20 am

i have heard the same thing. the other thing is what amount of your credit you are using too. i have heard if you use more than 25% or 30% of your credit limit on a credit card you will be penalized for it.



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