Why Do I Have Several Credit Scores?

You may have heard of credit scores, but you may not know that you have more than one. In fact, you likely have several credit scores, and understanding them is key to taking control of your credit. This credit repair article will help explain the different types of credit scores and how they’re used. Read on to learn more!

You don’t have just one credit score. There are numerous various credit scores and the businesses that create them. Despite the fact that your credit ratings are calculated based on information in your credit reports, there are many various credit scoring models, or ways to calculate credit scores.

Your credit score can depend on the credit scoring model utilized as well as which credit bureau provides the report with data.

Not all lenders and creditors report to all three major nationwide credit bureaus. Some may only submit reports to two while others might not bother reporting at all. The types of credit scores utilized by lenders and creditors can vary, depending on the sector. An auto lender, for example, may use a credit score that emphasizes your payment history when it comes to auto loans.

Credit scores are important because they show lenders how likely you are to repay a loan. The higher your credit score, the better interest rate you’ll qualify for. You have more than one credit score, and each one may be slightly different. This is because there are many factors that go into determining your credit score, and not all scoring models weight these factors equally. However, understanding what goes into your credit score can help you take steps to improve it.

A low credit score can make it difficult to qualify for loans and get favorable interest rates, but it doesn’t have to be a death sentence for your financial future. There are steps you can take to improve your credit file and increase your chances of getting approved for the financing you need. At Clear Credit Solutions, we offer a free credit file assessment so you can find out what negative items are impacting your score and if we can help remove them.

Contact us today to learn more about our credit repair service. We’re here to help you achieve your financial goals and get your credit history back on track!