What Your FICO Credit Score Means To Your Financial Future
credit score
Have you thought about how good it would feel to increase your FICO credit score as quickly as you possibly can?
But before I jump ahead of myself, let’s get one thing perfectly clear…your FICO credit score can only be sold to you from Equifax.
In essence, the credit scores you receive from other credit reporting agencies have been uniquely created by each individual agency.
What I am talking about is the scoring models differ from agency to agency.
What does this mean for you?
In short, every agency will give you a DIFFERENT credit score.
So, make sure you got a copy of your credit score from each agency to know exactly where you stand.
Just in case you are wondering…the three major credit reporting agency are: Equifax, Experian, and TransUnion.
And here’s something else you need to know. All credit-reporting agencies are required to SEND you a free credit report (upon your request) once a year.
On top of that – if you are denied credit for any reason – you are entitled to a free credit report from the agency that the creditor used.
Chew on this for a minute…your FICO score is the score that the majority of lenders look at before they extend credit to you.
Aside from that, one thing’s for sure…if your credit score is low, getting credit will be a tough nut to crack.
Now, pay close attention to the different scoring models used by credit reporting agencies…
1. The broad-based next generation credit bureau risk score is called NextGen.
2. Equifax calls their FICO scoring model the BEACON.
3. TransUnion’s scoring model is called EMPIRICA.
4. Experian chooses the Fair Isaac Risk Model.
5. Credit Card issuers, Car loan lenders, Personal financing lenders, and those offering other installment loans used the Industry Option SM
As you might have guessed now that you’ve come to the end of this article…it is to see how important it is for you to understand your FICO credit score.
And guess what? This is only just the beginning.
