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Understanding Your Credit

If you have ever tried to read and comprehend your credit score, chances are you have either gotten really annoyed or absolutely nowhere near the level of understanding you need to make your credit score work for you. The fact is that your credit report is essential in almost every business venture you make. Whether it is purchasing a new house or trying to get a loan for a new business, your credit score, good or bad, will determine your how quickly you can get the money you need. A unified VantageScore credit score is being introduced to replace the currently confusing field of multiple credit scores offered by the three competing credit bureaus.

Currently, each credit bureau uses a proprietary credit score to rate credit worthiness of each consumer. Creditors use credit scores derived from credit reports to grant or deny credit, including credit cards, loans and mortgages. Different creditors use credit scores from Equifax, Experian, TransUnion or FairIsaac. Fair Isaacs produces the best known credit score, known as the FICO? credit score. Because of the differences in formulas used by competing credit agencies, the same consumer can have either good or bad credit score depending on who does the scoring.

Credit-Score.org, the authoritative guide to consumer credit scoring, introduced a news section devoted to the new VantageScore credit score. It helps consumers understand the Vantage Score credit score and to transition from the current system. Under the new scoring system, credit score differences between credit reporting companies, Equifax, Experian and TransUnion will be attributed to data differences within each of the three consumer credit files. Credit score will no longer vary due to the variation in the credit scoring algorithm model since the same formula will be used by all credit bureau.