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A Good Credit Score Does Not Guarantee Loan Approval
Do you believe your credit score has meaning?
If so, you might be interested in this post. I have a free credit score checking app that provides me with the following services:
- Check my credit score 24/7
- Real-time messages if my credit is checked
- Monthly reporting of any changes in my credit score.
Even though I rarely exceed 30% of my available credit and pay all my bills on time, my credit score fluctuates. Why? No one has been able to provide an explanation. So, I decided to do some research on the credit reporting agencies and the following is what I came up with.
There are two national credit reporting agencies in Canada. Equifax and Transunion and three in the USA; Equifax, Experian, and TransUnion. The scores each one provides can vary anywhere up to 15%. Why? The credit lending community uses different credit scoring models for different purposes. Each score is built using slightly different factors, depending on its intended use. Some credit score models may incorporate mortgage and/or mobile phone payment information in the calculation, for example, while others may not. Also, the reporting agencies use different algorithms and there is different information reported to each company, An…
