Kiah Treece is a licensed attorney and small business owner with experience in real estate and financing. Her focus is on demystifying debt to help individuals and business owners take control of their finances. Jordan Tarver is the assistant editor for loans at Forbes Advisor. Before joining Forbes Advisor, Jordan was an editor and writer for multiple finance sites, focusing on loans, credit cards and bank accounts.
His goal is to create actionable content that enables people to make sound personal financial decisions. When he is not working on personal finance content, Jordan is a self-help author and world traveler who helps people experience the world and discover themselves.
Select Region. United States. United Kingdom. Kiah Treece, Jordan Tarver. Contributor, Editor. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.
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Credit Scoring Models. Improving Credit. Building Credit. Credit Cards. Credit scoring models rank consumer credit behavior, so someone with a higher score is considered less likely to miss a payment than someone with a lower score—and therefore, a higher score can help you secure better terms when you're applying for credit. Because not all lenders and businesses use the same scoring models or versions, you may have several—or even hundreds—of credit scores.
Or they may choose to use one of VantageScore's credit scoring models, such as its most recent 3. These models build on top of a base model to give creditors in that industry a more tailored score, which ranges from to Companies can choose which score to purchase and use when reviewing applications and managing customers' accounts, which is one reason there's competition in the credit scoring world.
With this in mind, there isn't a single, "real" credit score. For example, when you're shopping for an auto loan , you may try to get offers from several lenders. Your scores may vary, but each is very real in the sense that the lender is using it to determine if you qualify for a loan and the rates and terms to offer you.
Generally, you won't know which of your three credit reports or which credit score a lender will use. However, because credit scores all rely on the same underlying data, building positive credit can help you get good credit scores regardless of the model. Conversely, negative items, such as late payments or a bankruptcy, could hurt all of your credit scores.
Partially, this is because lenders need to invest time and money into switching to a new scoring model. You'll also learn about which factors are most helping or hurting your scores and can track your score over time. Learn what it takes to achieve a good credit score.
The purpose of this question submission tool is to provide general education on credit reporting. The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team may include it in a future post and may also share responses in its social media outreach. If you have a question, others likely have the same question, too. By sharing your questions and our answers, we can help others as well.
But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates. Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.
When you apply for credit, potential creditors may want to gauge how likely you are to pay your bills on time. These scores are largely based on your credit reports statements generated by the consumer credit reporting bureaus that detail your credit activity and current credit situation and can help creditors assess how likely you are to repay debt.
Read on to learn more. Knowing your scores may help you determine the likelihood of your application getting approved and whether the creditor is likely to offer you favorable terms.
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