My Credit Score isn’t the same? Why?

When your lender ‘pulls your credit’ they get a Tri-Merged credit report.  That translates to, the single credit report they receive is a compilation of all 3 of the main credit bureaus reports.   The lender will use your Mid-Score.  That is not the average of your 3 scores, but the middle of the 3 scores.

Why do I have 3 different scores?  Shouldn’t they all be the same?

It seems like all the scores should be the same, but each bureau does its own computations; coming up with their own numbers.  Also, some companies only report to one credit agency, not like your mortgage that reports to all 3; So some of the credit agencies have different information to base your credit score on.

The lender will only use your mid-score to determine what type of loan you will qualify for.  So if they do need to do any credit repair, they will just work with the one credit bureau reporting your mid score.

What goes into creating your FICO Score?

Most people (74%) believe your credit score is based on your income.  Not True!

• 35% is payment history
  • The most important factor in your credit score is your payment history. Making payments on time is key in keeping and getting your score as high as possible.
• 30% is the amount owed
  • Keep your credit card balances low, at the most have 30% owed and 70% available credit.
• 15% is the history of your credit
  • How long have you had credit established? If you have all new credit, this could hurt you.
• 10% is new credit (less than 6 months old)
  • Getting new credit can help someone with little or no credit, if all of your credit is established, not to worry
• 10% type of credit
  • Diversity is best, a car loan, home loan, and a couple of credit cards.

Great credit requires a delicate balance.  Not too much on credit cards, not only a home loan;  But a balance, on time payments and the time to prove you are credit worthy.