All Three Credit Scores Matter

As you probably know, there are three major credit bureaus that each come up with their own value of your credit worthiness.

That’s why most credit reports are so-called tri-merge, because they include data from Equifax, Experian, and Trans Union.

While savvy consumers may know that only the middle of the three credit scores is used in many cases, it’s important to note that there are exceptions.

For instance, if you decide to lease or finance a new car, there’s a good chance the dealer won’t pull a tri-merge credit report.

Instead, they’ll opt to pull a less expensive report that displays a single credit score from one of the aforementioned credit bureaus.

For that reason, all your credit scores carry equal weight, and should be monitored evenly.

It’s really not uncommon to see a large credit score range between your three credit scores, so you could have a 730 score with Equifax, a 710 with Experian, and a 690 with Trans Union.

And that credit score spread could cost you, either by bumping up your interest rate or preventing you from obtaining credit altogether.

The reason credit scores vary by credit bureau is because like any other data collection company, they obtain and process information differently.

That’s why those single credit score reports are seemingly worthless, as you’ll never know what other bureaus may be reporting.

And if something is being reported in error without your awareness, it could provide for a nasty surprise at the negotiation table.

(photo: timsamoff)

Related Topics:

1. Which Credit Score Do Lenders Use?
2. Contacting the Credit Bureaus
3. Credit Bureaus
4. Experian Based Fico Score No Longer Available
5. Order a Free Credit Report Long Before Searching for a Mortgage