Credit Score Models
If you were aware you have more than one credit score. If you really look there are over 1000 different credit score models. A bit strange and confusing, but here is a quick guide to explain which credit score model you should care about.
You might think the phrase credit score means a specific number that everyone uses, but really it is a very general term. It actually is very generic, just think of what was stated above that there is 1000 different credit score models. So in a lending situation you should ask what scoring model the creditor is using.
But the question is which ones or one should you really care about? If there is an answer it would be your FICO score, which is the most widely used and trusted score today. Chances are if you are going to a large purchase such as a home, your FICO score will be what your lender uses. Now, this is a rule of thumb and there are exceptions. And if you are not sure what they are using it is ok to ask.
So beyond the fact the FICO score is the most popular credit score model, it also makes up the general basis for the reasoning behind credit scores. Meaning the same general areas of the FICO score calculation are found in other score. So your payment history will carry the largest weight followed by your debt to credit ratio. Etc..
Also, since a FICO score is just a brand of credit score, it is open to re branding. This is the case with other scores you might of heard of such as the Beacon Score.
That leads to the fact if know where you are at on the FICO score scale you should have a pretty good idea where you fall with the other scores. But it always does hurt to ask what your lender is using for a credit score model.
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Tags: Credit Score, credit score range, credit score scale, FICO score, FICO score range
Posted in Credit Score, FICO score
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