Three Scores and Why
If you’ve checked your credit score recently, you might have noticed three different figures. Each score is pulled from each of the three main credit bureaus, and they can differ. While small differences are completely normal, larger deviations between scores can impact the credit or loan decision.Ideally, your credit score should be the same among all three credit bureaus. However, some differences can occur due to:
• Varied credit reports by your creditors to the credit bureaus that factor into the percentages when calculating your score;
• Different inquiries;
• Erroneous information reported by your lender.
Whenever lenders request your credit report, they usually get all three credit scores. How the variance in scores is treated to determine your creditworthiness depends on the type of loan or credit for which you applied. If it’s a mortgage, your lender will most likely consider the three scores, but in most cases and for ordinary loans, the middle score will be used.
For example, if your credit scores are 500, 780 and 810, the middle score, 780, likely will be used to determine whether you qualify for a given loan or credit. Furthermore, the interest rates you will be charged will depend on the amount of the loan or credit for which you applied. If it’s a large amount, all three credit scores will be considered. So, be sure to check your credit scores frequently.