Once we become of grown adult age and/or begin doing things on our own such as pay for bills and rent, we all begin to understand the importance of having a great credit score. While many underestimate the actual purpose and significance of a credit score, sooner than later it tends to all make sense.
There are three main credit reports that we know of on a general basis (TransUnion, Equifax, and Experian). Many individuals question the purpose of three different reports, which generally gives distinctive reports.
Today we will discuss the 3 reasons why credit report companies provide different results to you respectively.
Everyone’s credit score is based off of a system, which is accumulated over time of purchases, credit card usage, and major investments (bills, apartment rent, and home mortgages). While there are three major scores, in all actuality there are 5 that you should pay attention to.
TransUnion: 300 - 850
Experian: 330 - 830
Equifax: 300 - 850
FICO: 300 - 850
VantageScore 3.0 (the least common on the list): 300 - 850
Although you should already have a pretty good grasp on the bills that you have in control and/or in debt, it is important to fully understand the benefits of these reports. The benefit to having multiple reports is that your complete history will be shown (and in times work in your favor). If one report simply showed a not so favorable description of your history, then that would look bad to the respective individuals you show it to. However, if you actually have a great history, then one of the other reports may fill in the holes, which will give the person who is reviewing your credit score a full glance of your history.
Each report provides different information from others because they are all sent information at different dates. This means while one may not be completely up-to-date, the other will be. That information in hindsight will help you (in benefit) depending upon if a debt is missing or if a debt is taken care of.