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Is your creditworthiness enough to please lenders? How do you effectively present your credit score to your lenders? Would they be interested in giving you the best interest rates that you deserve according to your credit score?

The impact of a successful transaction varies and/or depends on the legitimate credit scoring models that your lenders use to review your credit score. There are many credit scoring models or programs available in the market and so their results may vary or differ from another. So thinking that there is only one legitimate scoring model used by the lenders, is not true even though FICO score is one of most credit score models that lenders use. Don’t be mislead by that information.

Credit scoring models made an easier way for more people to borrow money and risk analysis for creditors have become more quantifiable making them more confident in their assessments. The models aren’t perfect, and a lot of mistakes still occur. But there has been extensive research and verification on the reliability of the scoring models. It is your right to pursue some clarifications from these scoring models if you happen to encounter some problems concerning your credit report and credit scores.

There are three major credit scoring models used by the lenders to review and analyze your credit score. The FICO score(used by equifax and myFICO), PLUS score (experian) and the CreditXpert. The scoring system is licensed out to The Big Three credit repositories, which in turn call it by individual names to help differentiate which repository is issuing which score. Experian calls their score a FICO; Equifax calls theirs the Enhanced Beacon; and Transunion calls theirs the Empirica Model. Other scoring models have been developed by other credit modeling companies, credit reporting agencies and even by some lenders.

All big three credit bureaus(Equifax, Transunion, and Experian) will collect every bit of seemingly relevant information they could get from creditor about a person including employment history, marital status, age, race, religion, testimonials, and any other information they could get their hands on. They would then provide this information to creditors who used it to determine whether or not a person was worthy of a loan and how much interest they would be required to pay.

As you might know, some creditors report to only one agency, while others report to all three. Experian collect the most of credit information for individuals from creditors than any other 2 credit bureaus including Equafix. Thus, most of lenders will look at your experian credit information. Even though FICO model is best known credit score model used by Equafix Credit Report and MyFICO Score Watch, PLUS score is widely used by most reputable credit report bureaus such as Experian and its associated free credit report services like freecreditreport.com. Therefore, most of lenders generally caculate average score based on 3 credit scoring models. From there, they make decisions whether you are responsible borrower or high risk borrower. That will make your interest rates big different.

When it is time for you to check your credit scores before you apply for a loan, your best solution is to get a 3 in 1 credit reports which will give you 3 credit reports, credit scores and credit monitoring. Freecreditreport.com or 3 in 1 Equafix Credit Report both can provide reliable credit scores which your lenders mostly likely look at. Then you know your credit status and know what you should do next.