Posted on: 24th Aug, 2007 09:59 pm
Does anyone know why there's 3 credit scores instead of just 1? Wouldn't it make more sense to just have 1 credit score? You got your transunion, equifax and I can't think of the 3rd one. A few lenders that I have spoken to always tell me "yeah we look at your mid score to determine whether you eligable or not." Ok so why 3 instead of 1 then???
Hi Wildstorm,
The three Credit bureaus give three different types of credit score to borrowers based on their individual guidelines. With the varying guidelines of the credit bureaus, the credit score keeps on varying.
But nowadays, a unified score is available which is obtained after combining the credit score of the three agencies. This unified score is known as Vantage score. With this type of score, the borrowers will get a uniform score from each of the three agencies and can avoid the three different scores. This will also give the lenders a consistent criterion to judge the creditworthiness of a borrower. To know more on Vantage score, you can refer to http://www.mortgagefit.com/credit-rating/vantagescore.html
The three Credit bureaus give three different types of credit score to borrowers based on their individual guidelines. With the varying guidelines of the credit bureaus, the credit score keeps on varying.
But nowadays, a unified score is available which is obtained after combining the credit score of the three agencies. This unified score is known as Vantage score. With this type of score, the borrowers will get a uniform score from each of the three agencies and can avoid the three different scores. This will also give the lenders a consistent criterion to judge the creditworthiness of a borrower. To know more on Vantage score, you can refer to http://www.mortgagefit.com/credit-rating/vantagescore.html
actually there more then 3 credit reporting agencies but thouse 3 are the ones that everyone reports to. Three are used to make sure that there are no mistakes and as methods of keeping them all in check.
"You got your transunion, equifax and I can't think of the 3rd one."
experian :)
experian :)
Ah ok experian lol. I think theres should only be one credit score. I just think its rediculous having 3 of them anyways.
These three presently dominate as they acquired competitors & consolidated the market over time. But guess what, there are newer credit bureaus that exists and are coming up slowly like Innovis.
Are you kidding me?? Another credit bureau??
Yeah, but as you said it is still a kid compared to the big three. :)
Innovis Data Solutions is the new type of credit bureau. Any harmful information on the Innovis credit report could help by preventing you from getting favorable credit offers through the mail.
"Innovis Data Solutions is the new type of credit bureau. Any harmful information on the Innovis credit report could help by preventing you from getting favorable credit offers through the mail."
I think if they just stick with on e credit score instead of having multiple ones, things would be alot easier I think. This is kinda rediculous if you ask me.
I think if they just stick with on e credit score instead of having multiple ones, things would be alot easier I think. This is kinda rediculous if you ask me.
"I think if they just stick with on e credit score instead of having multiple ones, things would be alot easier I think. "
I agree on that. Right now things are very complicated for ordinary guys like us. Authorities should do something to make it simpler.
I agree on that. Right now things are very complicated for ordinary guys like us. Authorities should do something to make it simpler.
"I agree on that. Right now things are very complicated for ordinary guys like us. Authorities should do something to make it simpler."
Sadly though, there won't be any change so the little guys like us aren't gonna have a chance which could cause an economic downfall.
Sadly though, there won't be any change so the little guys like us aren't gonna have a chance which could cause an economic downfall.