Understanding Credit & Credit Scores
One thing people need to realize that credit is a fluid concept. It is a mathematical equation where creditors and possibly collection agencies are reporting information on your personal consumer credit file. Taking that into account and the possible amount of information that is changing slightly or greatly the results of this will equate to the changing of your credit score, typically on a monthly basis however as new information is added or removed that score can change just like a math equation.
What also confuses people is how it seems every place they go to pull their credit they get a different credit score so which is the real one? The answer is actually a very simple one.
Different lenders place different point values on the same bits of information thus while you will never see the exact same credit score from a car and mortgage lender they typically are not very far off, typical variations range from 10-30 points.
The above does not factor in if the score is from the Vantage score model as that is a topic for another time.
About Wayne the Credit Guy:
With nearly a decade of experience working in the credit industry, Wayne Sanford has personally reviewed more than 11,000 consumer credit files. Sanford is a regular credit advisor for television and radio news programs and frequently contributes to several of the more renowned financial websites on the internet today. Sanford is a licensed and bonded credit company and is Fair Credit Reporting Act certified by the Consumer Data Industry Association.
