Comments on: How Your Credit Score Is Calculated

By: EFX Moderator, EM

EFX Moderator, EM — Thu, 11 Apr 2013 17:07:10 +0000

It sounds like you are financially stable, but a credit report is separate from your income and investments. It measures how well you use credit made available to you by lenders. When lenders look at your credit report, they want to know how you have handled your financial responsibilities in the past. By building a rich credit report over many years, you may be able to establish yourself as a safe borrower to lenders. Without this history, lenders could feel they are taking a risk. It’s hard to compare your situation to your friend’s though, since each credit report is different. I hope this helps.

By: EFX Moderator, EM

EFX Moderator, EM — Thu, 11 Apr 2013 17:01:05 +0000

Josh, great question. Your credit report shows how you use available credit—it’s not a measure of your income status. Thanks for posting.

By: EFX Moderator, EM

EFX Moderator, EM — Thu, 11 Apr 2013 16:56:33 +0000

Darcy, I’m sorry to hear of your frustrations. Lenders have the option of using a scoring model that best fits their purposes. They weigh aspects of your credit report differently and it can cause your score to be different. Here is more information on why your credit score could be different from your Equifax score: http://blog.equifax.com/credit/why-is-the-credit-score-my-lender-calculated-different-from-my-equifax-score/ I hope this helps.

By: Darcy

Darcy — Mon, 08 Apr 2013 15:03:27 +0000

I’m a little discouraged by the credit scoring system. I have been tracking my credit score through Transunion AND am working with a credit improvement agency. My TU score has gone up from the 500′s to mid 600′s and when I pull all 3 scores through TU, all of them are now above 600. So, I went to a mortgage broker to inquire about buying a home since my scores are above the 620′s and was told that my TU score was 549 and NOT 631. How can there be an almost 80 point difference? I was told that there were different scoring matrixes. If this is so, what good does having a score do me? If you can pick and choose how you want to score me then which score is the ACTUAL, CORRECT SCORE? Frustrating! My dreams of buying a house were smashed and I was utterly embarrassed.

By: Anonymous

Anonymous — Thu, 04 Apr 2013 13:21:42 +0000

That’s correct never close them it is good to keep them open at all times.

By: Anonymous

Anonymous — Thu, 04 Apr 2013 13:20:54 +0000

when dealing with a lender they take your lowest score and that is what they use.

By: Josh

Josh — Thu, 04 Apr 2013 13:15:35 +0000

1 to 2 years is a long time that isn’t good news! You guys shouldn’t be able to punish her for something someone else did! Your company needs to put rules in place. Them sending it 12 times islittle over board if you ask me and she should have a negative impact on her credit for that!

By: Josh

Josh — Thu, 04 Apr 2013 13:13:48 +0000

There needs to be a clear set of rules put in place and instructions on exactly what a person needs to do to improve they’re score. Because the impact it has on or lives is extreme! Because how it sits now you get punished for doing the right thing. For instance let’s say you have credit cards and a house and a car loan and you loose your job and can’t find a job for a year so you don’t pay anything because you can’t and everything gets charged off and is on your credit report. then you get a job and decide to do the right thing and pay all the money back. You get punished and your credit goes down another 100 points and all them charge offs stay on your report for another 7 years from when the payment posts! That is not logical and should be against the law! We the people need to speak out about this and force the Government to put laws I’m place to protect us from things like this!

By: Josh

Josh — Thu, 04 Apr 2013 13:13:29 +0000

I also don’t think it is fare that 1 little mess up or 1 small moment in your life can quickly drop your score 200 points in 1 month. But when you do good and pay on time it takes a year or longer to go up just a fraction of that! The system should not work like that, if you can go down that fast you should be able to go back up that fast. But then the rich wouldn’t get richer and that wouldn’t be fair those rich people are so special and so much better then us, NOT!

By: Josh

Josh — Thu, 04 Apr 2013 13:13:03 +0000

One thing I would like to know Moderator is why doesn’t your yearly salary Get put into your credit report? I make $135,000 a year and that should improve my score? But because I haven’t used credit in 2 years I have a low credit score and can’t even finance a $4,000 car. How much you make is a HUGE indicator whether or not if I will pay a measly 4,000 back! The system is broke and we all need to push to have it fixed! Me myself would much rather loan $ to someone who makes good $. That is just common sense!