[I]f you have been studying credit scores for some time, you know that the three major credit reporting agencies each have their own scoring system. You may also be aware that lenders receive a different score than what you can have access to. But did you know that there are more than 50 different credit scores available? Did you know that each creditor may request a different one?
Is It FICO?
With all of those options for credit scores, how do you know which one is most important? Is the FICO the one you should be concentrating on? Actually, just with FICO you can have multiple scores. There is no one specific score that has a bigger impact than the others. While your scores may not be all the same and may vary by quite a bit, they are only an indicator of your credit. It is far more important to focus on what your credit report has to say than just paying attention to a set of numbers.
How to Improve Your Credit Without Knowing the Right Credit Score
If you are looking to buy a house or car, you may want to know which score your lender will use. However, since you can’t know for certain what score they are going to see, the only option is to work with a single score that you can easily get access to.
You can buy your credit score or use sites like CreditKarma.com or other free credit scoring websites. While their score won’t be the exact one that lenders use, it can give you a good idea how you fare. You may also be able to get your credit score from credit card companies. Many of these providers are now offering free scores with the statements.
Once you have a credit score, continue to monitor it to see how it changes over time. If it is continually increasing based on positive decisions you are making, you can be sure that the score that your lender will use also is going up. As you see your score rise, you can know that you will have a better chance of approval with creditors regardless of which number they are using.