Today, I got three different scores that stemmed from the same agency (Equifax). Now, I understand there are three different credit bureaus, however, all three scores I am referring to were from Equifax. Online, It was 698. I asked my bank about financing and the score was 654. I called the car dealership about financing and it was 673. Why so different?
The bank told me that they get a score based on a different formula than what was given to me online. So, if every place gets a score based on a different formula, what's the point?
I hate CREDIT!
2007-09-24 09:01:59 · 9 answers · asked by Cita 2 in Business & Finance ➔ Credit
The scores may be weighted slightly differently depending on the circumstances. For example, if you are applying for a home mortgage, they will want to weigh more heavily your LONG TERM credit history, your stability of residence, etc. For a simple department store credit card, those things won't be as important, and they will weight the history you have on department store or other credit cards more. This will make different numbers come up in each circumstance. As long as there is not a BIG discrepancy in the numbers, you should be fine.
2007-09-24 09:07:23 · answer #1 · answered by Yahzmin ♥♥ 4ever 7 · 2⤊ 0⤋
Each creditor uses there own formula to make a lending decision, just as each credit bureau company uses different analysis to come up with your score, they are all three independent or some do a combined score. Based on your numbers you have good credit. Do not worry about your score just make your payments on time and keep your revolving balances low compared to the line limit, and you will be fine to get credit from lenders, that you can afford in the future.
2007-09-24 09:10:06 · answer #2 · answered by maybe 2 · 0⤊ 0⤋
I hear ya! Then try a credit union and you'll really be confused.
For the purposes of a mortgage, we pull all three experian, transunion and equifax then the middle score between the 3 are used.
It is frustrating because the whole scoring system is proprietary, and while we get a score....its like playing a game......we're getting a score and many of us aren't even taught the rules of the game...but we're getting a score anyway.
2007-09-24 09:17:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Credit scores are different for different institutions because they use different criteria. Your credit score basically identifies the risk someone is taking by loaning you money. Banks are less likely to take risk than a car company. The online credit score you received was probably for credit card companies. They tend to accept high risk, which is why your score is higher.
2007-09-24 09:10:45 · answer #4 · answered by joe9870 1 · 0⤊ 0⤋
I disagree about credit unions. My experiences have all been positive.
Many banks or credit unions will prequalify you for a car purchase.
The only reason that car dealers might be different, that I can think of, they have their finance companies. When you buy a new car at Toyota, they try to run it through Toyota Finance.
Personally, I think you should buy a used car. If the choice is to buy new car for $25,000 or a used car for $10,000 and invest the difference in stocks like eBay or Google, choose the used car with investment program.
2007-09-24 09:35:13 · answer #5 · answered by tolstoi1 3 · 0⤊ 0⤋
All places doesn't report to all 3 credit companies. Sometimes if you apply for a credit card, they only report to one credit agency so if the other ones don't have the inquiry on your report, your score will be higher with them. Also one credit report may report on time while the other still have some discrepancies that were not cleared up and you usually will have to dispute it to have them correct it.
http://flavaofblog.blogspot.com
2007-09-24 09:21:32 · answer #6 · answered by Anonymous · 0⤊ 0⤋
yeah. different types of places running your credit, look at different aspects of your credit and use their own formula for calculating. what's the point? i've been trying to figure that out myself. it's impossible to have a perfect credit score. things count against you that shouldn't. applying for credit will count against your score.... it's like a conspiracy. i think the fact that places can charge you higher interest rates based on lower scores, makes them want to lower your score. don't you think? i mean, it benefits them to do so. it's all a racket. but, what can you do? we're all at their mercy. everything is based on credit.
2007-09-24 09:13:10 · answer #7 · answered by practicalwizard 6 · 0⤊ 0⤋
Every credit bureau has it's own formula. Every place that finance anything have their own formula on top of the credit report.
2007-09-24 12:11:47 · answer #8 · answered by SandraD 3 · 0⤊ 0⤋
Seems like you do hate credit. So, you should just pay cash.
Imagine
2007-09-24 09:58:43 · answer #9 · answered by Anonymous · 0⤊ 1⤋