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At Equifax, FICO score rating is called Beacon credit score. At TransUnion, itís called Empirica. At Experian, it's known as Experian/Fair, Isaac Risk Model.
The reason each of three major credit reporting bureaus will have three different scores is because they donít all share same data. So when checking your credit report, just make sure it comes from three major credit reporting bureaus: Experian, Trans Union and Equifax.
Examine your credit reports from all three major credit reporting bureaus before you apply for a big loan like a mortgage. Fix any errors in all three reports before you shop for a loan because it takes time to correct your credit report.
* Credit counseling will hurt your score The current FICO credit score rating system ignores any reference to credit counseling that may be in your file. The researchers at Fair, Isaac, company that created FICO credit scoring rating system, found that people getting credit counseling didnít default on their debts any more often than anyone else.
However, any late payments you've had with creditors will hurt your credit score. Credit counseling can hurt your ability to get a loan because you probably have had trouble paying creditors.
Some lenders will back away if you are in credit counseling. Others may see it differently, but usually will charge you higher interest rates than if you had perfect credit.
The best way to improve your credit report score is paying your bills on time and paying down credit card debt. Check your credit report regularly for any errors and make sure you don't fall for these common credit score myths.
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