It’s always helpful to have good credit when buying real estate and important to check your credit report before making that big purchase. But in researching your credit, there are three scores you have to look at: numbers from Equifax, Experian and TransUnion.
These are the three credit reporting agencies responsible for updating your credit scores. However, you may occasionally notice the three scores are different or are not up-to-date. This can affect future financial endeavors you may want to make, like applying for a first mortgage loan.
As it turns out, your score is dependent on how creditors report information to the credit bureaus. Reasons why your three scores may be different:
1. Creditors report information to the different bureaus at different times
2. Some creditors may not report to all three bureaus
3. Each credit reporting agency’s formula for calculating your score is different
Keep in mind your credit reports should not be drastically different from one credit agency to another. And don’t get nervous if you don’t see recent activity show up on your credit score right away- give the report some time to catch up.
For more information on creditors and credit reporting agencies, read the full post here.
Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blogand CBS Moneywatch She is Chief Content Strategist atRealtyJoin.com, a community for real estate investors.