Which Credit Scores Do Banks Use?

Many banks and credit unions provide credit scores to account holders and credit card customers. These scores are calculated using credit report data sourced from one of the three national credit bureaus: Experian, TransUnion, or Equifax. The bureau that provided your credit data should be indicated along with the score.

Here are some common types of credit scores provided by banks:

• Generic Credit Scores: These include versions of the FICO® Score and VantageScore®, which use a scale range of 300 to 850. Higher numbers indicate a greater degree of creditworthiness.
• FICO Bankcard Score: This score uses a scale of 250 to 900 and is tailored to predict the likelihood you will pay your credit card bills.
• FICO® Score NG: Some lenders use this version, which assigns scores on a range of 150 to 950.

Can I Trust the Score From My Bank?

Yes, you can trust credit scores reported by your financial institution. They accurately reflect your credit history as it appears on the credit report upon which the score is based. However, the credit score your bank provides for free may not be the same one a lender will use when considering your application for credit.

Should I Check My Credit Score Elsewhere Before Applying for Credit?

For tracking overall credit standing, regularly checking your FICO® Score or VantageScore will give you a good idea of your progress. When you’re ready to apply for a loan or credit card, a more comprehensive approach may give you a better idea of how lenders will likely view your application.

Checking a generic credit score based on your credit report maintained at each of the three credit bureaus will give you a good idea of where you stand.

How to Check Your Credit Report

You can get credit reports from:

• The national credit bureaus: You can access your Experian report for free and also check your FICO® Score 8 based on Experian data for free.
• AnnualCreditReport.com: You have the right to access your credit reports from all three bureaus at AnnualCreditReport.com.

How to Improve Your Credit Score

If you’ve been tracking your credit score through your financial institution without seeing improvement, you may need to adopt some new habits to increase your scores. Here are some tried-and-true approaches:

• Make payments on time: Timely debt payments will tend to raise your scores, while just one payment that’s 30 days or more overdue can cause a dramatic score drop.
• Reduce revolving debt: Keep your credit utilization ratio under 30%, but the lower your utilization, the better for your scores.
• Check your credit reports: Regularly check for inaccuracies and dispute any discrepancies with the relevant credit bureau.
• Pay off collections: Paying off these accounts may make you look better to lenders.
• Seek new credit only as needed: Multiple hard inquiries for different types of credit in close succession can have a cumulative negative effect on your scores.
• Consider Experian Boost®: Enrolling in this free feature can add on-time payments for recurring expenses to your Experian credit report.

Contact O1ne Mortgage for Your Mortgage Needs

At O1ne Mortgage, we understand the importance of a good credit score when it comes to securing a mortgage. Our team of experts is here to help you navigate the complexities of credit scores and find the best mortgage options for you. Call us today at 213-732-3074 for any mortgage service needs. We are committed to helping you achieve your homeownership dreams.