When myFICO.com details what goes into a "credit score," they admit that it's not a simple numerical score used by all lenders:
They claim:
"In general, when people talk about "your score", they're talking about your current FICO score. However, there is no one credit score used to make decisions about you. This is true because:
Credit bureau scores are not the only scores used.
Many lenders use their own credit scores, which often will include the FICO score as well as other information about you.
FICO scores are not the only credit bureau scores. There are other credit bureau scores, although FICO scores are by far the most commonly used.
Other credit bureau scores may evaluate your credit report differently than FICO scores, and in some cases a higher score may mean more risk, not less risk as with FICO scores.
Your credit score may be different at each of the main credit reporting agencies."
Each credit reporting agency will wind up considering what that agency deems relevant to determine your "creditworthiness." This differs from Equifax, Experian and TransUnion, the Big 3 credit reporting agencies.
Most importantly -- your credit score changes all the time.
The reason for this goes as follows:
"As your data changes at the credit reporting agency, so will any new credit score based on your credit report. So your FICO score from a month ago is probably not the same score a lender would get from the credit reporting agency today."
Check out www.myFICO.com today and learn more about the ins-and-outs of credit scores, before you need to apply for a new home loan or new car.
More information is available in these books at Amazon.com:
Your Credit Score, Your Money & What's at Stake (Updated Edition): How to Improve the 3-Digit Number that Shapes Your Financial Future
The Road to 850: Proven Strategies for Increasing Your Credit Score
Fix My Credit Software 2009
The Credit Secrets Bible
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