There is a variety of credit scoring system:
- Fico
- AdvantageScore
- TransRisk
- Experian’s National Equivalence Score
- Credit Xpert
- CE Credit Score
- Insurance Score
So what is your TRUE CREDIT SCORE and how can you get it? Did you know that The Consumer Financial Protection Bureau ordered TransUnion and Equifax to pay more than $23 million in fines and restitution “for deceiving consumers about the usefulness and actual cost of credit scores they sold to consumers?” The problem, according to the CFPB, was that TransUnion and Equifax misled consumers by suggesting that the educational credit scores they offered were the same scores lenders used to make credit decisions. According to the CFPB, however, these scores were “rarely used by lenders to make credit decisions.
The orders explained that the credit score models most often used by lenders are those developed by Fair Isaac Corporation. You may know these scores by their common name, FICO scores. In contrast, the scores offered by TransUnion and Equifax used proprietary scoring models, sometimes referred to as “educational credit scores.” The name comes from the idea that these scores help educate consumers about their credit scores generally. Since 2011 FICO has come in more than 60 different scoring models.
