3 Credit Scores - Find Out About The Authorities Who Maintain Your Credit Score

When we wish to borrow money, our credit worthiness needs to be high. Repayment of the loan is an important factor the lender always considers before approving the loan request. Credit bureaus generally supply information about borrowers to the lenders. Past credit data is studied by these bureaus and every person is given a credit score. The credit score is thus nothing but a figure that shows how credit worthy that person is. When the credit score is high, the lender can know that it is relatively safe to issue the loan. Did you know that there are three credit scores in the US and that they all maintain your record?

There are three major credit bureaus in the United States. The Experian, TransUnion and Equifax are these three credit bureaus. Statistical analysis of individual credit history is carried out to calculate a person's credit score. The credit score is essentially an indication of the credit worthiness of the borrower. For calculating individual credit scores, separate methods are taken up by these three credit bureaus. And thus what the actual finding would be of these 3 bureaus can often differ. An automatic software is used for the calculation of the credit score. This software has been made by FICO (Fair Issac Corporation). Thus the term FICO scores is also often used to refer to credit scores.

All the three credit scores are combined in the full credit report. The VanatageScore credit score is also calculated by all the bureaus, just like the three free credit scores. The VantageScore ranges between 501 and 990. The range of the FICO credit score is 300 to 850.

Did you know that you can get the credit score and that too free? However this will become possible only once you have subscribed to one of the several credit monitoring system of the bureaus. This credit report data is also what the lenders get to find out whether you are credit worthy or not. Actually this is what the lender considers when deciding whether to approve the loan or reject it.

Why is it important for you to find out what your credit score is? Did you know that there may be an error in your score, and thus you should try to find out if this is the case. Often the agencies would maintain your credit report for even up to 7 years and so you should definitely verify that the report is accurate. And thus, you must always know whom to approach for your three free credit scores and also what you should do to know it. You must definitely have the information about this.

By: Michelle Schmidt

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For more information about getting your 3 credit scores instantly and online, please be sure to check out our website, www.3FreeCreditScoresOnline.com.