The Importance of Having 3 Credit Scores

Credit score is considered to be one of the most important aspects of life right now. Loaning and other things that have something to do with finance depend on the credit scores of the people. In other words, credit score is the representation of the financial condition of a person. When it comes to insurance or loaning purposes, there are a lot of companies that are really strict when it comes to credit scores. Therefore, it is crucial for people to take good care of their credit scores. For some lenders or banks, the credit score is the window to see the real personality of the person. Here, they can ascertain if the person is responsible enough to handle financial obligations.

That is the main reason why the majority of companies ask for credit reports before they offer their services. This will be their basis, whether to have a new hire or not. If that is the case, it is important to have 3 credit reports. These credit scores will come from 3 major credit bureaus. There are actually three leading credit report agencies in the United States of America. These are Equifax, which covers east coast, Trans Union, which takes care of the west coast, and Experian for the Midwest.

In some credit report institutions, they only check the credit score for a particular region, depending on the region where the person belongs. However, these 3 credit report bureaus check all major creditors. Among these major creditors are mortgage banks, dealerships and credit-card companies.

What makes 3 credit scores important is that majority of banks and leading lending or credit companies uses the middle score of the 3 credit scores as their barometer to ascertain if you are credit worthy or not. It means that if you have a high score in the first credit bureau, and you have low scores on the other two, companies are more likely to select the second or the lowest score. That is the reason why it is important for you to know your credit score very well and be a watch dog.

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