Credit Scores Revamped

Credit Scores Revamped

It appears that the three main credit reporting agencies have decided to adopt the same scoring system for determining your credit score. In the past each company had its own method of determining credit scores and each had different ranges of possible scores.

See Article Here

I think this is a pretty good idea as before the credit scores really did not mean anything concrete, you basically were getting three different numbers based on different criteria and to make matters worse they were based on different scoring scales. At least now they have to follow the same formula and an 800 will be the same at Transunion, Experian, and Equifax. You score however will still be different among the three agencies due to the fact that each agency still keeps its own records on your credit history and this could result in different credit scores.

Here is the new scale ranges from 501-990

A — 901-990
B — 801-900
C — 701-800
D — 601-700
F — 501-600

It sounds like this change has already been made and I am pretty excited to see where my credit score stands now days. I haven’t run a credit report on myself in about a year and a half. I plan on using the free credit report offered at www.annualcreditreport.com and will write up a little tutorial as I go through the process, as from what I’ve read so far the credit bureaus make things pretty confusing when trying to use your free annual credit report at their site…we’ll see.

[tags]Credit Score[/tags]

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  • It makes sense to have a standard. I thought it was odd the three companies each did it uniquely.

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