The perfect credit score is many times misunderstood. The reason for that is that, though we know there are three credit bureaus. We usually only hear about people being concerned about their FICO score. FICO is a scoring model that is only used by one of the three bureaus.
Trans Union uses the FICO scoring model while Experian uses Beacon and Equifax uses the Empirica scoring system and they all range differently in lowest and highest possible scores. So you see, that makes it particularly difficult to determine what the perfect credit score is.
Add into this the fact that not all creditors report to all three bureaus and it gets even more complicated. That’s part of the reason you can have a 650 on one scoring system and have a 7 11 on the next. It depends what each individual credit bureau is reporting and which of your creditors are reporting to whom.
When it comes to running the credit for consideration for an account, you might find that your perfect credit score with one application might be different when you apply for something else. For example a home loan and when you apply for a used car loan. They might be running different bureaus exclusively. Mortgage lenders usually consider all three and take the middle of the three but even some home loan lenders would look only at one specific bureau, ignoring the other two. If they happen to choose the bureau that is reporting more negative information on your profile there goes your answer.
I’ll tell you that for me the perfect credit score is the credit score that allows me to have the greatest number of options or benefits for borrowing money. Simply said, if a home loan lender wants a 720 to lend me money for a home with low to zero points and the best going rate then that’s what I would strive for. But remember that they always have the choice to change that.
Bottom line higher is always better and making sure that everything is accurate on your credit report is very important. Eighty percent of consumers have errors on their credit. Which makes you think do you monitor your credit and when was the last time you looked at what’s on it?
Article Continued
Now that were talking about the perfect credit score and how it can be determined. I want to share a little about my journey getting my credit back up to the 700 range. I had some serious credit problems in the last three years and I’ve been working since to get it back up. One product that has helped me get closer to that perfect credit score we all try to reach has been Credit Repair Magic. It gives so much great information and it keeps updating. Truly a great source of information!
Here’s how I went about it.
First, I got a copy of my credit report. Anywhere will do as long as you have all three bureaus so you can see all the creditors that are reporting to your profiles.
Then, after a couple of months checking out credit repair reviews, I decided to get Credit Repair Magic. I applied almost all the ideas I picked up from there and the program is great because it’s self directed but not just an ebook that you have to read.
I cleared most of the derogatory accounts except for a few accounts that were giving me a serious headache. For those accounts I had to go to the professionals at Lexington Law. I really resisted hiring a professional. I didn’t want to do it but I found it necessary to do it. Those last three accounts were the biggest dollar amounts and consequently the ones causing the more damage on my credit profile.
After a free consultation with Lexington Law, I decided to give them a try. I had tried all I could and decided it was time.
Lexington Law Free Consultation and Ebook.
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