A combined credit score is one that is calculated from your VantageScore (r) and FICO scores. The combined credit score does not reflect your credit history. However, mortgage lenders might consider these factors. However, you shouldn't assume that credit reports combined will produce a comparable score. Each credit bureau uses an entirely different scoring algorithm.
VantageScore
A VantageScore combined credit score is based on a composite of all three credit bureaus' information on your payments and credit. It also considers several factors, including your payment history, available credit, and age of credit history. The VantageScore model considers all of these factors, but the FICO credit score takes only one.
Your VantageScore combined Credit Score can be affected by credit activity, such opening new accounts or making credit inquiries. These recent actions will reflect your current financial position. Lenders like to see that you have only taken out credit that you actually need. Your credit score will improve by paying off your debts promptly.
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 five categories are dependent on your credit history and can vary. For example, a person who has a short credit history may have a score that is higher than someone with more experience. Your credit score is updated when new information is submitted to credit bureaus.
The length of your credit history is another factor that lenders look at. It helps them gain a more detailed view of your credit history. This usually results in a higher FICO combined score. It reflects your ability to make timely payments and maintain a low credit utilization ratio. Credit history is determined by several factors including the age of your oldest accounts and newest accounts, their average age, and the time between opening and closing each account.
VantageScore(r)
VantageScore(r), which is a combined credit scoring tool, uses data from all three credit bureaus in order to determine your 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 assist the lender in determining how responsible you are when it comes to credit.
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. Your credit limit is also determined by your credit score. There is no one formula for getting the best APRs, but many lenders recommend that you maintain a high credit rating. Good credit will help you qualify for the best cards with competitive rewards and annual statement credits.
Equifax
Equifax credit reports contain a summary on your credit history. Lenders may use this information to determine your eligibility for loans, college, and other programs. It includes information about your payment history and account terms. Double-check your credit report for accuracy. 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.
Your Equifax credit score is calculated using information provided by all three nationwide credit bureaus. Your score may be different from that of your credit cards company. Lenders will use your FICO score 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 the credit grantor immediately if you discover any. Keep track of the date, company, and name and make sure you follow up as necessary. TransUnion will take down any inquiry that is deemed fraudulent.
A good credit score should be between 720 and 780. Your TransUnion credit score depends on the type and lender of your credit application. Good credit scores don't guarantee that you will get a loan or credit card approval. But, they can provide greater freedoms and flexibility.