In life in the United States, honesty and integrity may not be attributed to the inherent nature of Americans, but rather rely more on a comprehensive credit system. By combining "rewards and punishments" and implementing clear rules, the credit system has become an "invisible eye" that monitors individual economic and social activities. However, for many who have just immigrated to the United States, there are many questions regarding credit scores.
Why do different institutions provide different credit scores?
There are three major credit reporting agencies in the United States: Equifax, Experian, and TransUnion. Since these three agencies may receive different credit reports and use different Scoring Models, the credit scores provided by these three agencies for the same individual are generally different. Another situation is that the information Equifax and Experian have about you may differ. A credit reporting agency might miss information about one of your accounts, and this information could raise or lower your credit score, leading to a different score compared to other agencies. In this case, you need to carefully verify that all three agencies have the correct information.
Why does the same agency provide different credit scores?
Different credit reporting agencies use different scoring models. However, even within the same credit reporting agency, it will use different scoring models based on the requirements of different lenders. The formula for each credit scoring model is slightly different. Under normal circumstances, credit scores change at any time, so you must ensure that you are comparing credit scores from the same day. For example, mortgage lenders and auto loan providers focus on different credit records and information, so they will obtain different credit scores.
So, which credit score is better to use? There is no such thing as a "better credit score." To protect their own interests, each credit reporting agency usually "claims" that the score it provides is the most accurate or predictive. In fact, regardless of the final score, the entire calculation process must strictly comply with relevant guidelines. All credit scores are based on essentially the same data and calculation steps.
What is the typical score range?
Experian: 330-830
Equifax: 300-850
TransUnion: 300-850
Fico: 300-850
VantageScore: 501-990 (usually divided by grade, from A-F)
What factors affect credit scores?
credit-score-education
Payment History——35%
Amounts Owned——30%
Length of Credit History——15%
Inquiries and New Credit——10%
Type of Credit in Use——10%