It’s crucial to realize that you have more than one credit score. Each of the three major credit reporting bureaus; Equifax, Experian, and Transunion produce separate credit scores from each other. These triple credit scores are important in order to gain a much more complete picture of your credit profile.
Your credit scores have many purposes and uses. Many institutions will check your scores to make quite a few different decisions based upon what they find. For example, a credit score is one of the factors that mortgage lenders use to determine the risk level of a potential borrower. Of course, there are many considerations that are a part of mortgage lending, but your scores are definitely analyzed. Another common use of your credit ratings has to do with what kind of financing you can qualify for with a car dealership. Basically, anything related to your abilities to pay back a loan will call for a check on your scores.
So why get all three scores? Most lenders will only consider one of your scores. While this may seem unfair, especially if they use your lowest score, it is a common practice. The best thing you can do is to get all three scores so that you will be aware of any scores that need improving. Determining what to do to improve your scores would require a different and separate subject than what is being discussed here. However, having this knowledge is the first step to correcting anything if need be.
Getting your scores is really just the first step in the process of gaining a full understanding of your credit profile. You should also look for the best credit report service that you can find. The company should be able to provide you with all of your scores and all of your credit reports. This information is absolutely vital in knowing where your credit truly stands, how it got there, and what you can do to improve your financial situation.
Once you have all of this information in order, you will be in much better control of your credit file. There is one more thing you should do. Taking advantage of the company’s credit monitoring service is critical in making sure that you keep up-to-date on the changes that can happen to your reports and scores. After you have put a good deal of work in improving your credit, you will definitely want to make sure that you are aware of anything that is potentially harming. This will allow you to make sure it stays in great financial shape.