I know you are confused about your credit score.
Well, the good news is, YOU ARE NOT ALONE.
We all know that most of us are confused about our credit scores.
If you read my previous email you will know that there are several types of credit scores that you can get. You will find out also about the three credit companies that produce the credit scores and the difference between a FICO and a VantageScore.
By the way, the free credit scores that you get from the internet, your bank, and other credit card providers are created by VantageScore. On the other hand, most of the lenders and credit card companies use the FICO score to determine if the applicant is qualified for the mortgage or loan that he is applying to thus, may consider as the real credit score.
But, what are the disadvantages that can a consumer, like us, get from a free credit score?
Basically, it creates confusion for us especially if we are going to apply for a loan. I mean, we do not want to be surprised or frustrated once we found out the difference, right?
It does not only create confusion. Using the free credit score as the basis for you to get a loan can cause your credit score to get lower.
How you may ask?
Well, once they checked your credit score, and found out that it has a lower threshold, it creates a hard inquiry on your credit report that will greatly affect your credit score. Add to this, is the higher interest rate that they can give you as a borrower.
Pretty, bloody right?
We highly suggest that to get a loan or mortgage, you should check the exact credit score that a lender checks. However, it is hard to get the exact score without paying it. There are banks that offer this like Discover, American Express, and Citibank however, the twist is that it may not be also the same version that your lender will use.
If you want to see different versions of the FICO score, try considering applying for a monthly subscription at MyFICO.com. It costs $19.95 to $39.95 per month.
You can use a free credit score for general purposes. However, if you are planning to get a loan or mortgage, try to spend some money and get a FICO version of your score.