Credit scores can be very confusing. Especially for first time home buyers who may need a little help getting into the home of their dreams. Hi, I am Fawn Bertram with Homes by Fawn and Hawaii Life. Chances are when it comes to your credit you’ve heard about FICO, Experian and Vantage, and more. What do they all mean?
A credit score is a way to evaluate your financial reputation, and you may have had hundreds of them. And yes, there are differences in how they are calculated. First of all, Experian, Trans Union, and Equifax are the three main credit bureaus. They all came together about a decade ago to create their own version of the credit score model called the Vantage Score.
However, each has different information about you, so even though they use the same model to gauge your score, all three can still give you a different result. Then there’s the FICO score, which is the oldest and most widely used model, allegedly used by 90% of top lenders to judge your worthiness. Now, this is the one you hear most about from commercials, and it’s usually offered to you monthly by your credit card provider.
In essence, FICO is like Google and Amazon, but Vantage still has market share and is gaining in popularity. So how do you know which one is best for you? You can find out what type of methodology your lender uses, but it’s always your best bet to keep your credit history clear and strong so that you’ll come out with a high score no matter what model is used to get your loan.
For more information on regaining trust with lenders or and ensuring you put your best credit foot forward, be sure to go to my website for more information. As always, I am always here to help with any of your real estate home buying or selling needs. Fawn Bertram with Homes by Fawn. As always, feel free to reach out to me for anything Community or Real Estate related. Stay tuned or visit my website or Youtube channel with more helpful tips on the home buying and selling process. Make it a great home buying and selling day.