Are the Scores the Credit Card Companies Tell You the Real Score?

Lenders typically use a credit score to help determine whether to extend credit. Your credit score helps lenders understand risk without reading your credit report in depth. Lenders may use different models for credit score reporting depending on what they are most concerned about. You can purchase a credit score through the credit bureaus, but this score usually is not the score lenders see when they run your credit.

Credit Scores You Buy

Credit bureaus such as Experian sell credit scores to consumers as part of their credit monitoring services. However, MSNBC reports that these scores may not be the same as the FICO scores that lenders use to determine whether a person is a good credit risk. Experian, for example, uses its own formula to generate a credit score for customers. This score allows customers to get an idea of how credit-worthy they are but is not shared with lenders or used in lending decisions.

Considerations

Different lenders may use slightly different models to determine your credit score. Many lenders examine your FICO or Vanguard scores, but there are actually about a dozen models lenders may use, according to Get Rich Slowly. Thus, even if you purchase or obtain a genuine FICO score, it may not be the same score that a particular lender uses to make credit decisions.

Relevance

The score you purchase from Experian or other credit bureaus may help you determine your credit score but is less relevant than your actual credit history. Thus, focus more on the information in your credit report than on trying to obtain a score. The information in your credit history affects your score, and you can get an idea of whether you have good credit or poor credit by examining this information. You should examine this information regularly to make sure there are no errors or omissions that may negatively impact your credit score.

Boosting Your Credit Score

Even though you cannot find out your "real" score, you can still take action to boost your credit score. Pay all your bills on time and pay off debts to boost your credit score over time. In addition, dispute any errors in your credit report by writing to the credit bureau. Get Rich Slowly says you must contact the bank that generated the improper report in addition so that it does not re-report wrong information after you have it removed from your credit report.