Why Your Credit Score May Differ From the Lender's

Why Your Credit Score May Differ From the Lender's

There are a few reasons why the credit score you see and the one your lender uses might be different.

First, you should know that your credit score is based on the information in your credit record, which is kept by the three major credit companies. If these reports are different, a credit score from one report might not be the same as a number from another.

There may be more than one way to calculate credit scores, and there’s no promise that the one you use to check your own credit is the same one your loan uses. Also, each model updates the scores it gives out on a regular basis, and some score versions are made just for certain businesses. 

Below, we’ll talk more about the changes between credit scoring tools and other things that could affect your score. But it’s important to remember that paying bills on time, keeping credit card debt low, and keeping a long credit history will usually lead to a good or excellent credit score across all types, versions, and credit companies.

Here’s what you need to know about your different credit scores and which ones you should pay the most attention to when you’re looking for new credit.

How to raise your credit score before you apply for credit

Paying all of your bills on time is a tried-and-true way to build good credit across all of your credit accounts. This is not a quick way to improve your credit score, but if you do it regularly, it will help your score no matter what type or version you use. If you can, paying off your debt amounts will also lower your credit utilization, which will also help your score.

If you’re going to apply for credit soon, don’t do any other hard credit checks in the weeks before. These could temporarily lower your score. Also, don’t close old credit accounts if they aren’t too expensive or hard to keep up with. Your credit scores will benefit from the account’s credit limit and long past. Lenders will be happy to see that you have been able to handle an account in a responsible way for a long time.

How to Understand All of Your Credit Scores

When filing for a mortgage, for example, it’s a good idea to look at a certain score type and version. But in general, the differences between your credit scores aren’t that big, and if you have good credit habits, all of your scores will benefit.

What is the best way to figure out a person’s credit score?

There isn’t really a “best” or “worst” way to score your credit. They’re just different, and different lenders may use different numbers. No matter what number a lender uses, making payments on time, not opening too many new lines of credit, and trying to keep your debt as low as possible can help keep your credit in good shape. Still, understanding your other credit scores can give you a better idea of your credit health as a whole.

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