December 19, 2014
Your credit score. Do you know what it is? Have you checked your credit report in the last year for errors? Do you think you only have one credit score?
“If you’re oblivious to your credit score, believe me, lenders are not,” said Ulzheimer. “Even if your credit score is not important to you right now it should be because you don’t know what you will be financing in the next year or so.”
There are also some common myths associated with credit scores.
- Credit scores are used by employers. According to Ulzheimer, this is the king of all credit myths. “The Fair Credit Reporting Act says employers can pull your credit report with your permission for the purpose of pre-employment and continued employment screenings. However, your credit score is not included in those reports.”
- You only have one credit score. Ulzheimer said this is another big myth. “You have hundreds of credit scores. Each of the three credit reporting companies - Equifax, Experian and TransUnion – has a variety of FICO-scoring models installed and commercially available. Every person has at least 65 different FICO scores under the FICO brand, nine VantageScores, plus all the scores the lenders build and use themselves.”
For more information on credit scores and common myths, listen to the TrustDALE radio episode online.