Misconception #1: Credit scores as well as reports are handled by the government. – False
Fact: Credit scores as well as reports are regulated by laws like some other business but are usually not immediately governed or identity has been stolen (www.whidbeynewstimes.com) even managed by the government. The three credit bureaus (Experian, Equifax, and Transunion) are companies which collect information about men and women in order to package and promote it to various other businesses. FICO is fundamentally a software company. Their application is really what figures out credit scores. FICO sells this software to the 3 bureaus.
Misconception #2: Credit scores are another component of the recognition report. – False
Fact: Credit scores aren’t part of the credit report; they are created out of the info in the report. It is a subtle but distinction which is important. Your article is financial info about you gathered by the bureaus. the score of yours is based on this information, i.e., if you improve your report, you’ll improve your score.
Misconception #3: I’ve one credit report as well as one recognition score. – False
Fact: You have three separate credit reports and three separate scores based on those reports. Most of the three credit bureaus keep their very own credit report about you. They all calculate your score based upon their version of the report of yours, and they all estimate the score a bit differently. The score of yours can easily be a fifty to 100 points distinct from one bureau to the next.
Misconception #4: Credit accounts are computerized, thus they should be correct. – False
Fact: Credit reports are not ideal. There is no central computer that all of the banks and credit cards are hooked up to. If you owe money to a business entity, they might report your payment history to one, almost all, or maybe none of the 3 credit bureaus, as well as errors do happen. According to the US Public Interest Research Group, extra as twenty five % of credit reports have important mistakes.