Many of us remember our fathers or grandfathers commenting on the use of credit to achieve. Our purchases as something close to blasphemy. In decades past the prevailing attitude in middle class America was “if you can’t pay for it, you shouldn’t buy it”. In today’s complicated social and economic environment, maintaining a good Doutor Score has become critical to home. Family and the capacity to function effectively in everyday life in general. It is not just about the means to finance purchases. But empowers employment opportunities, social status and financial management as well.
Exactly how the credit bureaus (Experian, Trans Union, and Equifax) actually calculate credit scores is a mystery to everyone. They each have their own proprietary formulas that seem to be beyond ordinary understanding. Although the bureaus do not disclose their formulas they are forthright in providing succinct information regarding maintaining. And improving scores and information on how credit patterns affect scores. The following are a few tips on maximizing credit scores.
How credit reporting works
The consumer should understand that the bureaus only evaluate accounts that are report to them by the consumer’s creditors. If a credit account is reported to Experian and Equifax but not Trans Union it will not be reflected in the Trans Union Doutor Score. This is the primary reason there is frequently a considerable difference in scores between repositories (bureaus). When consumers apply for credit the creditor may rely on any of the three bureau scores or all three as with a mortgage application. It is therefore important that a score substantially lower than the other two reconciled with the repository. Frequently the lower score is a result of credit accounts with a good payment history not being report to the repository.