The most accurate credit scores are the latest versions of the FICO Score and VantageScore credit-scoring models: FICO Score 9/10 and VantageScore 3.0/4.0. It is important to check a reputable, accurate credit score because there are more than 1,000 different types of credit scores floating around.
The Credit Scores Lenders Check
If your objective is to see the exact credit score lenders will use to evaluate an application to borrow, that isn’t possible. Lenders interpret credit data from the major bureaus in different ways, using publicly available credit data as the basis for their own proprietary credit score models. A car loan lender might weigh on-time car payments more heavily than mortgage payments, for example.
Checking the same credit score a lender uses isn’t really necessary, either. Your credit score shouldn’t vary too much from one credit-score model to another. Analysis from the Consumer Financial Protection Bureau found different scoring models put consumers in the same credit-quality category 73-80% of the time. So, if you have a good credit rating from one model, you’d likely have the same from another.
Best Way to Track Your Own Credit Score
The best approach is to track your credit score from one reputable source over time. Choosing one model to follow makes any variations in your score from model to model a moot point, and tracking your score’s overall trend – whether it’s increasing or decreasing – can tell you more than your specific credit score number at a given time.
If your score is increasing, good job! You’re doing the right things, so keep it up. This upward trend shows your reliability as a borrower and is an indication that, with time, you will be eligible for better borrowing terms and rates.
If your score is regularly decreasing, this could be a sign of poor credit habits and could clue you into changes you need to make in your personal finances.
How to Easily Check Your Credit Score for Free
You can check your credit score and get personalized credit-improvement tips for free here at WalletHub.
This answer was first published on 06/15/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
