Credit Reports Three Scores
2010
Why do I have 3 different credit scores from the credit reporting agencies?
I am currently monitoring my credit report from the 3 credit bureaus. I filed bankruptcy almost 2 years ago and I currently have no balances on any of the 4 credit cards I have and have never been late on a payment to them. I monitor my credit report with Experian and I now have a 620 credit score. With experian I have seen a steady increase in my credit score since I filed my bankruptcy. With the other two agencies, I haven’t seen much of a change. Experian is at 550 and Transunion is at 505. I have checked my report with all 3 bureaus and they all have the same information. Can anyone tell me why there is such a difference in the three credit scores? As of right now, I have $100 balances. I pay all my bills on time and from everything I’ve read, a discharged bankruptcy from 2 years ago should have my credit back to about the 650 -670 range. Am I missing something?
The reason you have 3 different credit scores is because each of the bureaus are independent of each other, and have completely different scoring systems. In my 4+ years I have only seen someone have the same score from 2 of the bureaus ONE time. Don’t be concerned about this at all.
What you should be working on (and it sounds like you WANT to) is raising your credit score. With the scores you have right now, you are in the bottom 10-15% of the population. But don’t fear! It is rather easy to increase your scores drastically, and within a reasonably short amount of time.
#1: Keep each type of account on your reports. Your bureau is divided into the following: a)Mortgage, b)Installment (like auto, student and personal loans), and c)Revolving (credit cards). A:If you aren’t a homeowner, or don’t think you can qualify for a purchase, look into a Lease To Purchase option. This will allow you to get your foot in the door to home ownership. B: Paying cash for your vehicles will hurt you in the long run. If you can’t qualify yourself, get a co-signor…At least you will be building your credit!
***C: REVOLVING ACCOUNTS***
The reason I am starring this, is because this is where the large majority of my clients with low scores have fallen short, and the easiest to correct!
1. Never pay late- pretty self explanatory
2. Don’t close out all of your cards! One HUGE misconception is that you will benefit if you pay off and close out all of your accounts. On the contrary, this actually really hurts your credit. Think of it this way…You have had these long-standing accounts with good payment history, and all of a sudden they are gone! It’s basically like a heart attack to your credit report! Closing out a few accounts which haven’t been used for a while is okay- start with accounts that have smaller available credit limits and huge interest rates like store cards (Sears, Old Navy, etc).
3. Remember the “50% rule”. Simply put, don’t go over 50% of your available credit limit. It doesn’t matter if you have a limit of $1000 or 10,000…Keep it under the 1/2way point. People who do not follow this will see a drastic drop in their scores; even if they pay on time each and every month!
4. Lastly, USE YOUR CREDIT! Charge dinner, gas, groceries, whatever…And pay it off when the bill comes. You want to make a conscious effort to keep your credit open and active every month.
I hope this helps! It will take some time and effort, but you could see your scores reach the prime level (above 685) within a years time! 
Credit Scores Education – Airplane (Spanish) 60
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