Here at Scorewell, our credit management experts tell our clients to focus on credit reports over credit scores because there are simply so many scores out there. If you’ve ever applied for an auto or home loan, you might’ve noticed that the lender pulls your credit history and score from several sources and the results are not the same. Why do various credit reporting agencies score differently? In short, it’s because each agency has a unique method of evaluating your total financial picture. Let’s take a look at some examples.
The most common credit-scoring models are VantageScore and FICO. Each model may apply a different weight on certain factors that affect your credit score. For example, one model might place a greater emphasis on the balance of your credit card while the other considers the age of your credit as more important.
However, all scores come from one place: your credit file. So rather than comparing your various credit scores and fretting over inconsistencies, it’s more productive to make sure the information in your credit file is up to date and accurate.
Yes, credit scores do matter. They are an important part of your financial well-being, and having a good credit score can literally save you thousands of dollars over the course of a loan. But ensuring that 100 percent of the details on your credit report is just as important in helping you achieve your highest score possible.
Consider Scorewell as your personal concierge in full credit repair and your coach on credit education. Our team’s expertise and electronic disputing technology have successfully removed every form of negative credit including bankruptcies, tax liens, judgments, foreclosures, and repossessions. Contact us for a free consultation.