The three basic things everyone knows about their credit score, and if you do not know, now you know is that, they are three different scores from three different bureaus and are used to determine our creditworthiness. There are other things that are not really deep that you need to know. Let’s talk about them.

Credit score will range from the lowest, 300 and the highest, 850. With these scores, creditors can easily determine which consumer is worthy of more credit and which consumer is a risk to them. Remember that creditors are in this business to make profit and then, lend you money but if they look at your file and see that your score is low, it means you are a risk to their earning profit. Most creditors would not want to take that chance and that is why it is imperative that your scores are high.

The three credit reporting agencies, Trans Union, Equi fax and Experian, are not really reporting your scores differently on purpose. The reason why these scores are different is that they all operate independently, not all financial institutions report to these three agencies, they have distinct formulas for calculating their scores and cannot translate the same numbers due to this.

What lenders do is take two of the three scores you have and make a decision whether to offer you credit or not. When they sense an inconsistency on your credit report, they take the third score and compare it with the other two to determine whether you are truly worthy of credit or not. That is why you need to work on disputing every inconsistent item on your report.

If you are planning on getting mortgage, auto loans or college loans anytime soon, know that your credit scores will play an important role in determining if you will get it or not. So, put your credit report house in order! More information on credit repair is in our restoration kit if you are planning on doing it yourself, if not, hire a registered credit repair agency.

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