Posted on Thursday, 11th June 2009 by admin
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Probably all of you know about the fact that, there are three major credit bureaus. Each credit bureau is separately valuable of your credit worthiness.
Due to this reason most credit reports are so-called tri-merge, it is because data from Equifax, Experian, and Trans Union are included in them.
While those consumers who have sufficient knowledge about credit scores may also know that in many cases only the middle of the three credit scores is used, but it is necessary for all of you to know that there are exceptions.
I can give you an example that, if you decide to lease or finance a new car, there are sufficient chances that a tri-merge credit report will not be pulled by the dealer.
Instead of pulling a tri-merge report, they will certainly choose to pull a less expensive report, in which a single credit score is displayed from one of the aforementioned credit bureaus.
Due to this reason, all your credit scores should be monitored evenly and they all carry equal weight.
In reality it is a common thing that we may see a large credit score range between your three credit scores, so with Equifax you could have a 730 score, with Experian it could be 710, and you can have a score of 690 with Trans Union.
And such type of credit score spread might be able to harm you either in the form of increment in your interest rates or completely preventing you to obtain credit of any kind.
The reason behind the variation of credit scores by credit bureau is that to collect the data they follow the method of a normal data collection company, they use to obtain and process information differently.
That is what the reason why those single credit score reports seem to be worthless, as you will never be able to know about the report prepared by other bureaus.
And if the report contains any kind of error about which you know nothing then at the negotiation table it could provide you a very unpleasant surprise.
Tags: bad credit score, Banks, bureaus, Credit, credit bureaus, credit repair, credit report, credit score, credit scores, data collection company, dealer, equifax, experian, Experian and Trans Union, finance, Free Credit Report, Interest Rates, loans, single credit score, Three Credit Scores, Tips & Advice, Trans Union, tri-merge credit report
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