Maintaining Tabs on Your Beacon Credit Score
Maintaining Tabs on Your Beacon Credit Score
Keeping a tight rein on your credit score is more crucial than ever in these challenging economic times. Now is the moment to take action if your score falls short of what you believe it should be or what you would prefer. However, if you have ever attempted to fix or raise your credit score independently, you know how challenging, tedious, and annoying the process can be. You may also be aware that the three main credit reporting agencies—TransUnion, Equifax, and Experian—possess varying and frequently contradictory information and, more often than not, different ratings for the one individual.
It is in your best interest to obtain and maintain the highest possible credit score because lending standards are becoming increasingly strict from banks and other financial institutions. The widely-known FICO score is really known as the Beacon score according to Equifax, one of the three main credit reporting companies. The Empirica score is what TransUnion calls it, whereas the Experian/Fair, Isaac Risk model is what Experian uses. Your creditworthiness is determined by a numerical rating; this ranking goes by many names, but they all boil down to the same thing: your beacon, empirica, or experian credit score.
Even for the same person, the scores may vary slightly among the various reporting agencies. There are two main causes behind this: To start, it is possible that various businesses do not have access to the same information because not all financial institutions and lenders report to all three credit bureaus. On a second point, the scoring methodology could vary slightly across agencies. The banks typically merely take an average of the three results as they know the scores will be different and that the small changes will not make much of a difference. However, if one of the agencies is missing crucial information, such up-to-date mortgage records, the disparity in scores can be substantially worse.
What is the process for obtaining one's credit score? To see your report and your credit score, go to the Equifax website. You can also access your reports from the other two agencies by visiting their respective websites. Another legal right you have is the annual right to receive one free credit report from each of the three major bureaus. Go go to www.annualcreditreport.com for more information on that. If you are curious about the details of your past, it is wise to use this free resource. The primary objective of maintaining a close eye on your credit report is to rectify any mistakes that could have a detrimental effect on your rating. There are occasions when one agency has the right data and another doesn't.
You must not sit on your hands and allow other people to dictate your fate. In order to secure the most favorable terms and rates when purchasing a vehicle or a home in the future, it is a good idea to learn your beacon credit score, verify the accuracy of your credit report, and think about taking steps to raise your beacon credit score.
Post a Comment for " Maintaining Tabs on Your Beacon Credit Score"