For every American, having a good credit score is vital. Golden FICO scores throughout the borrowing history will make it easier to access any type of credit at lower rates and fees.

Those with a poor credit resort to various ways to increase FICO score, because they know how important it is.

Who exactly determines credit score and what goes into it? There are three credit bureaus that determine the credit worthiness of a person. People can order credit reports from these three bureaus and learn about their FICO score and credit worthiness.

These three bureaus have all the power when it comes to determining your credit score and credit risk. But when you receive your three different credit reports, you will find that your FICO scores varies in all of them. This is often surprising for most people, and they try to improve the FICO score.

The three credit bureaus are Experian, Equifax, and TransUnion, and there can be a lot of reasons why the credit reports may vary. More often than not, the three credit bureaus might have received different information. Although this is the most common issue there are other reasons to that can lead to such variations.

The simple truth is that credit reporting is never perfect. In fact, anything that involves numbers is hardly ever perfect. In many cases, the information that the credit bureaus receive from the creditor might be incorrect or incomplete.

Remember that the credit bureaus will not bother to verify if the information they have received is correct. Based on whatever data they have received whether it is correct or incorrect they will create the credit report.

Typographical errors are also often responsible for the discrepancy in the credit reports. This is the reason why creditors should be responsible for sending the correct data, but they often don’t take enough care.

Ratings are not the same

However, slight differences in the three credit reports can happen even without any error. This is because the FICO scores rating for the three credit bureaus varies from one another.

The same account can be counted by the three bureaus in three different ways, leading to the variation in the credit score by a few points. This variation is usually minute and does not affect the credit worthiness.

The best in the business

Remember that the creditor’s mistake isn’t your fault, so you must fix credit score. A terrific credit repair agency like EZ Credit Repair Now can do all the tedious work for you to make sure your credit reports come back clean!