Which Credit Score Means the Most?
Credit scores can be very confusing, especially for 1st time homebuyers who may need a little help getting into the home they’re dreaming about.
Chances are, when it comes to credit, you’ve heard about Fico and Experian and Vantage and more…but what do they all mean, and what are the differences?
Well, credit scores are ways to evaluate your financial reputation, you may have HUNDREDS of them – and yes, there are differences in how they’re calculated.
First of all, Experian, TransUnion, and Equifax are the three main credit bureaus and they came together about a decade ago to create their own version of a credit score model called VantageScore. However, each have different information about you…therefore, even though they use the same model to gauge your score, all three could still create a different result.
Then there’s the FICO score, which is the oldest and most widely used scoring model, allegedly used by 90% of top lenders to judge your worthiness. This is the one you hear about most in commercials, and that is usually offered to you monthly by your credit card provider. In essence, FICO is like Google or Amazon, but Vantage still has market share, and is gaining in popularity.
How Do You Know Which One Is Best for You?
You can find out what kind of methodology your lender uses, but the best bet is to keep your credit history clear and strong so that you’ll come out with a high score, no matter what model is used to get your loan. For more information on regaining trust with Lenders and ensuring you put your best credit foot forward, be sure to go to my website for more information.
And as always we’re here to help with any of your home selling or buying needs. This is Dana Weyl with Coldwell Banker Select Owasso Homes and Lifestyle group where we focus on real estate relationships and results.