In our continuing effort to help our circle keep their credit scores as high as possible comes a new post from our friend Ken Strey at Scorewell that answers that question we’ve all asked… Why are my credit scores so different every time they are run?
“Yes, there are many different credit scores out there. There are credit scores consumers can pull themselves through credit monitoring, mortgage scores, auto scores, and many more.
There are actually over 16 different credit “scorecards” that exist today. Each of these scorecards will reflect different credit scores. These scorecards are designed to help particular industries better gauge credit risk.
The mortgage industry, for example, is more concerned with consumers past mortgage history than anything else. So they weight home loan history heavier into the total score calculation than other accounts. A consumer’s credit monitoring score might be 660. But when they apply for a mortgage, their score might be much lower.
A credit score that a consumer pulls themselves will not be the same as their mortgage score. Their mortgage score won’t be the same as their auto score, that car dealers pull either, because the auto score weighs past auto history heavier into the score makeup versus consumer scores.
**** There is one constant in all these scores. The impact of any negative information listed.”****
It’s important that you address any incorrect negative information on your credit report well ahead of making any purchases where the interest rate is based on your credit score, such as a home or a car. Especially if the negative is in the same industry as your proposed purchase. It can take 30-90 days for corrections to get processed and reflect on your score. Be sure to check with a credit expert who can guide you through the process and help you receive the highest score possible.