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A high creditworthiness is deemed very essential for anyone to get the loan approved. All that the lender needs to ensure is that they will get their money back before the loan is approved. Credit bureaus generally supply information about borrowers to the lenders. Past credit data is studied by these bureaus and every person is given a credit score. The credit score is thus nothing but a figure that shows how credit worthy that person is. As the credit score goes up, the likelihood of the borrower paying back the loan amount increases. Did you know that there are 3 credit scores in the US and that they all maintain your record?

The United States have three primary credit bureaus, and you should know about them all. These credit bureaus are the Experian, TransUnion and Equifax. These bureaus measure the individual credit scores by analyzing past credit history and giving a score. The credit score is essentially an indication of the credit worthiness of the borrower. Different alternative calculation methods are often adopted by these credit bureaus to find out your credit score. As a result, the individual conclusions of these 3 agencies are often not the same. A software that is automated calculates the credit score. This software has been designed and made operational by the Fair Issac Corporation (FICO). There are those who thus also call them FICO scores.

The three credit score figures are generally studied together in a credit report. The VanatageScore credit score is also calculated by all the bureaus, just like the 3 credit scores. The VantageScore varies in the range 501 to 990. The FICO credit score varies between 300 to 850.

These scores can be acquired free of charge by anyone. For this, subscription to one of the several credit monitoring services of the bureaus is necessary. Such information about a person is also provided to the lender who can thus take a knowledgeable decision. These credit scores are crucial when it comes to accepting or denying the loan application.

Why is it important for you to find out what your credit score is? Are you aware that often there may be an error in your credit score and so you should find out whether this has happened or not. The agencies often maintain your credit reports for up to 7 years and thus, it always makes sense to verify whether it is correct or not. So go ahead and find out how you can find out about your 3 credit scores and also learn whom to approach for this. It is absolutely essential that you know about this.

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