i have an account with freecreditreport.com and i've been keeping track of my score. it is low and i am working on bringing it up and have been keeping track of my progress. how come the score that i get is higher than the score that shows up to prospective loan companies? i don't understand how that works, any clues?
2006-11-20 06:15:29 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
different scoring modules for each reporting agency and the scores that are pulled by loan companies can be lower since they may use certain criteria in theirs. It should NOT be that much in a difference.
2006-11-20 06:34:48 · answer #1 · answered by golferwhoworks 7 · 0⤊ 0⤋
The score that people get on the web at freecredit and such will be lower than that of the loan companies as they tend to use a somewhat different formula to arrive at the numbers. It has been that way for some time and there have been quite a few that have put up a fuss over it. Many have gone in assuming that the number they see is the same as that of the loan officer only to be declined due to insufficient credit. If I knew the magic formula, I would pass it on to you. Just keep doing as you are and your score will improve to where you need it to be or better.
Hope this helped.
2006-11-20 06:32:15 · answer #2 · answered by nite92 3 · 1⤊ 0⤋
I think their service is an expensive ripoff. I go to http://www.annualcreditreport.com and get 3 copies of my credit report for free - one each from TransUnion, Experian and Equifax. You can get a report absolutely free every year and access it for one month.
Every time there is an inquiry to your credit report (like when you apply for a loan), your score goes down a little. Maybe this accounts for them getting a lower number than you do.
If there's anything on your report that is more than 7 years old, write the credit bureau demanding its removal - it is expired. If there is anything inaccurate on your report, dispute it. If there's something unfavorable that you want taken off, you can actually challenge it every month, forcing the credit agency to verify the debt each time (which costs them money). Eventually they may just take it off to get you to stop challenging it. Below are some links that you might find helpful. Good luck.
2006-11-20 06:39:06 · answer #3 · answered by thyladydulcinea 2 · 0⤊ 0⤋
There are 3 seperate credit bureaus (Equifax, TransUnion, and Experian) and you are probably only seeing one. Each has their own scoring system.
Here is some additional info. Hope this helps.
2006-11-20 07:05:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋