Consumer Credit Differences

Ever wondered why your credit score is different whenever you request it from different sources? The three major credit bureaus each have a different score while auto companies, banks, jobs and others pull up a different score. After investigating, I was able to determine that the differences arise because everyone uses a different formula to compute your final credit score.

1. Auto Formula-This is the score bureaus use whenever you go to buy a car
2. Tenant Formula-This is the one used by landlords whenever you apply to rent an apartment.
3. Consumer Formula-Given to you whenever you request your own score.
4. FICO formula-Mostly widely used and is the one used when applying for a home loan, credit card or line of credit.

Fair Isaac and Company(FICO) is a company founded in 1959 by Bill Fair,an enginneer and Earl Isaac, a mathematician. The two developed a formula that they claimed can predict the likelihood of a borrower to pay bills in full and in a timely manner.

Still confused? Get the CREDIT SECRETS BIBLE for more information.