MW Financial Services

Our personal credit score? We hear commercials all the time talk about credit score's and the higher the score the better the loan. Commercials from Credit Karma, Net Credit and Equifax Boost etc. promote their product about the need to know your credit score. They are correct, as a person should keep track of their score, Knowing your credit score is important as credit decisions, insurance rates and sometimes a job can be based on your credit. The BIG question; how ...accurate are these services when monitoring your credit. I personally have a file with Credit Karma and a national credit card that has my credit score on my billing page. This weekend I received an email from both, I looked at the credit scores and was amazed by the disparity. On the credit card, Transunion showed 48 pts higher than what they showed on Credit Karma. 48 Pts? This is a difference in what type of rate you get. How can this be? All credit scoring systems are different. A Transunion score for an auto loan might be different than a Transunion score on a home loan. The three main credit scoring agencies will modify their loan scores to certain industries. This is done as different lenders in certain industries look at loans differently and are getting the best information they can to make good credit decisions. The generic score we get from the Credit Karmas of the world can offer a good evaluation of where we stand however it is not to be taken as gospel when you go to get a loan. I cut my teeth in the loan business when credit scores were not around. We had to learn how to read a credit report. Decisions were made on the strength of the bureau and not a score. I do not like credit score financing, do not think they tell the whole story and are used for easy decisions however they are what we use now. My advice is use the Credit Karma and like agencies for educational purposes with the understanding when going to get a loan the lender may pull a different score than what you think you have. For more information on credit and financing please visit my blog at www,mwfiservices.com