Trax: About your credit score(s) …

While most people tend to think that they have one credit score, there are actually many different types of scores.



Here are some specifics …


According to MarketWatch

Equifax, Experian and TransUnion have  their own algorithms …. each with their own mix of payment history, debt and other factors.

The FICO score — a measure of credit risk that ranges from 300 to 850 and is calculated based on the data in credit reports from the three major credit bureaus — remains the most widely used in 90% of consumer and mortgage loan decisions,



The three bureaus created a consolidated metric called the VantageScore in an attempt to compete with FICO.



Note: “Recent credit” means number of inquiries against your account by lenders – whether you initiated the process or not.

For example, if a crook fraudulently applied for a credit card in your name and the credit card company pulls your credit report … then your credit score gets dinged unless you (1) detect that the inquiry was made, and (2) get the credit bureau to take the inquiry off your record.


Of course, there are two parts to both the Vantage Score and the FICO score – the weighting of the variables and the quality of the data.

With regards to the latter, MarketWatch says …

1 in 5 consumers has an error in at least one of their three credit reports.

When there’s an error – say, identity theft or erroneous reporting — the burden of proof is on the consumer  — rather than on the credit agency or lender.

That is,  consumers have to provide the credit bureaus with evidence of their innocence.

Credit bureaus resolve an average of only 15% of consumer disputes internally, while the remaining 85% are passed on to the lenders or creditors for resolution.


FYI: I was surprised by the number of errors on my credit report … including listing as “current employer” a company that I hadn’t worked for in 15 years … and listing a prior address in Alabama. Nothing against the state, but I don’t think I’ve ever even visited Alabama …

This stuff is really starting to creep me out.

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