The best way to get an overall picture of a person’s credit is to use the credit scores from the major credit bureaus. These consist of Experian, Equifax and Trans Union (in the US) and by averaging all three credit scores, it gives a good indication of credit worthiness.
As all credit bureaus and agencies around the world calculate credit scores and ranking using different mathematical formula, algorithms and rating scales, it can be very difficult to know what an individual’s actual credit rating is. Different lenders use different criteria to determine the level of risk involved and whether a credit application is successful or not. While one lender may decline someone with a particular rating, another lender may accept the application even though the credit score was the same.
To avoid confusion and disappointment of applying and being declined credit, use an average credit score obtained from all three credit scores from the major bureaus. The result will be a clearer understanding of acceptability.
There are companies and websites that offer the service of obtaining all three credit scores, these are usually called ‘3 in 1 Credit Reports’ and contain credit scores and credit history from Experian, Equifax and Trans Union. Of course an application may be made to all three credit bureaus individually, however this can be a slower and more time consuming process.
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