Credit Scores: A game with unknown rules (to some)
By Mark Ferguson
Every game has rules that govern who will be the winner and who will be the loser
or runner-up. You can’t use NBA rules or officials for the NFL games, MLB for NHL,
you get the picture. I bring this up because we, the consumer, are participants in a
game that we never knew we were in….that game is called: Credit Scoring. We often
become conscious that we are involved in something bigger than ourselves once we
reach a point were we want, or need a car, home, or credit of some sort.
Who are the officials? What are the Rules? Where do I start?
There are 3 major credit-reporting companies (CRC)
Transunion ( www.transunion.com), Equifax (www.equifax.com),
and Experian (www.experian.com).
Any business that you seek employment, or some form of credit, contacts one or all
of these agencies. They collect data sent to them from any previous, or current, company
or public agency i.e. bankruptcy court or civil court.
Credit Scores are numbers that range from 300 to 850 in a grading system designed to
show the probability of the consumer defaulting on a loan or payment. This number was
designed by a company called Fair Isaac ( www.myfico.com ). Fair Isaac is the industry
standard for credit scoring, but there is another one called :
Vantage Score ( www.vantagescore.com ) this is a newly formed scoring system created
by Transunion, Equifax, and Experian.
Obtaining your credit reports can first be done by going to www.annualcreditreport.com
According to it’s site “AnnualCreditReport.com provides consumers with the secure
means to request and obtain a free credit report once every 12 months from each of the
three nationwide consumer credit reporting companies in accordance with the Fair
and Accurate Credit Transactions Act (FACT Act).”
Contacting these agencies, obtaining a copy of your report and knowing what your credit
score is begins your understanding of the rules to the credit scoring game.
Peace and excellent credit
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