A credit score measures the likelihood that a person will repay her debt. The three major credit bureaus issue credit scores for consumers. Individuals often find that their credit score differs greatly among the credit bureaus.
Function
Each credit reporting agency uses a different algorithm to determine a person's credit score, according to Mortgage Fit. These systems assign different point values to items on your credit report, which result in a different score.
Types
In addition to true credit scores, the credit bureaus issue "educational scores," which are scores that give a general estimate of a person's credit rating. These scores can be significantly lower or higher than a person's true credit rating, according to USA Today.
Considerations
Lending agencies use true credit ratings rather than educational scores to determine a person's creditworthiness. As of September 2010, consumers are entitled to view their true credit score for free at least once a year.
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