A combined credit score is one that is calculated from your VantageScore (r) and FICO scores. This score does not necessarily reflect your total credit score. However, it may be considered by mortgage lenders. However, you should not assume that combined credit reports will generate a similar score. Each credit bureau uses a different scoring method.
VantageScore
VantageScore is a combination credit score that takes into account information from all three major credit bureaus about your credit history and payments. It also takes into consideration your payment history as well as available credit and age. VantageScore models take all these factors into consideration, but FICO credit scores only consider one.
Recent credit activity like credit inquiries or opening of new credit accounts can impact your VantageScore combined score. These recent actions are a reflection of your current financial health. Lenders would like to see you only have taken out credit for what you need. Your credit score will improve if your debts are paid on time.
FICO
Homeowners looking for a mortgage should use the FICO combined score credit score. It is used to assess your ability to finance the mortgage. The score is calculated based upon five factors that may vary depending on your credit history. Your score may be higher for someone with a shorter credit history than it is for someone with a longer history. As credit bureaus receive information, your credit score will be updated.
Lenders also consider the length of your credit history. It helps them gain a more detailed view of your credit history. This factor typically translates into a higher FICO combined credit score. It reflects your ability to make timely payments and maintain a low credit utilization ratio. Your credit history is affected by many factors. These include the age of your oldest and most recent accounts, the average age and the length of time that each account has been open or closed.
VantageScore(r)
The VantageScore(r) combined credit scoring system uses a formula that combines information from all three credit bureaus to determine your overall credit score. Your credit score depends on many factors, including payment history and available credit. Late or missed payments can significantly reduce your credit score. Ideally, you should have several long-standing lines of credit and a diverse mix of account types. This will allow the lender to determine your creditworthiness.
Lenders use your credit score in order to determine whether you are approved for credit and whether you will be offered a particular interest rate. It also determines your credit limit. Although there isn't a single way to do it, many lenders recommend having a good credit score to ensure you get the best APRs. You can get the best cards for competitive rewards and statements credits by having good credit.
Equifax
Your Equifax credit report includes a summary of your credit history. This report can be used by lenders to determine if you are eligible for a loan, college, scholarship, or another program. It contains information about your payment history, account terms, and other pertinent information. It is important that you verify the accuracy of your credit report. If you notice any inaccuracies, you can reach out to the creditor/lender to have them corrected. You may also be able to file a free dispute with your credit bureau.
Equifax uses information from all three national credit bureaus to calculate your credit score. Your credit score might differ from your credit card company's. The FICO score, meanwhile, is used by lenders to determine your credit worthiness.
TransUnion
Your credit score is an essential part of your financial life. There are several methods to improve it. First, check your TransUnion credit report for any suspicious account information. Contact TransUnion immediately if there is any. Keep track of the date, name, company and follow-up as necessary. TransUnion will remove any inquiry that is found to be fraudulent.
A score of 780 to 720 is considered a good credit score. Your TransUnion credit score may vary depending on which lender you apply for and what type of credit you are applying. While a good credit rating does not automatically mean that you are approved for a loan/credit card, it can give you more freedom and flexibility.