Why Do I Have Different Credit Scores?
If you have rented an apartment recently, you probably aren’t surprised to learn that the property management company or landlord is going to pull a credit report. Almost anywhere you turn, someone will be pulling credit information on you to determine if you’re risk. That’s why, it’s important for you understand the basics about credit scores and credit reports.
The three largest credit bureaus are Equifax, TransUnion and Experian. All three bureaus collect credit information, credit histories and tabulate a credit score (FICO score). Landlords, banks, credit unions, auto insurance companies, utilities and a variety of other companies can use credit bureaus as a resource to pull a credit score or tenant credit report.
It’s not unusual for all bureaus to have different credit scores for one individual because of a variety of reasons:
• Lenders and creditors may only report to one bureau or all three credit bureaus, which means a score could be very different at each bureau.
• Each bureau has its own scoring model for determining scores.
• Credit bureaus receive credit information updates daily. Therefore, credit scores may change from day to day.
Credit scores on individuals are derived from:
• The amount you owe
• New credit accounts
• Payment histories
• Length of your credit history
• Varieties of credit currently used
Landlords will run a tenant credit report to check your financial stability, whether you pay bills responsibly and would be a good candidate as a tenant. Credit reports might give them insight into:
• Bill paying habits
• Bankruptcy, Liens and Judgements
It’s very important to pay your bills on time and maintain a good credit score, so you’ll have good credit when applying for rental property, loans, credit cards, or other types of financing.