Credit Card Solution

Credit score Q&A: “Why credit scores are different?”

In case you didn’t know, there are three 3 major credit bureaus, including Equifax, Experian, and TransUnion.

And if you order a credit report that gives you all three credit scores (which is recommended), they most likely will not match.

For example, you may see something such as the following:

Equifax: 740
Experian: 720
TransUnion: 760

***Get all THREE credit scores free to see where you stand!

So you may be wondering why there are three scores, and why the credit scores differ.

Well, these three private companies dominate the credit scoring realm, and are utilized by various banks and lenders to determine your creditworthiness.

However, some banks may only order credit scores from Equifax, while others only rely on scores from TransUnion.

Others may take the mid-score of all three, a common practice employed by mortgage lenders to get a better overall view of your credit history.

Credit Scores are Different for Three Main Reasons

First, the credit bureaus mentioned above receive data from your creditors at different times of the month.

As a result, depending on what day you order a credit report, data may only show up at one or two of the bureaus, not all three.

So a recent collection or charge-off may only show up at TransUnion and Equifax, weighing those scores down while the score at Experian remains elevated, that is, until the derogatory event is eventually reported there as well.

Secondly, not all creditors report all their data to the three credit bureaus – they may just send it to one or two.

And finally, the credit bureaus define consumer tradelines differently, meaning a charge card could be seen as a revolving credit card, and so forth.

As a result, credit scores may vary slightly, even if the same data is reported.

There is a lot of variation in the Fico score from bureau to bureau, which is why newcomer VantageScore is working to better align the data.

Most creditors rely on Fico score for their credit scores, but VantageScore is beginning to grab market share.

Visa has introduced its “Borderlinx” and “SkyBOX” online shopping services in markets around the world so everyone can enjoy shopping at thousands of online merchants from the U.S. and the U.K. Making it easier for you to shop on the internet these holidays, “Borderlinx” and “SkyBOX” eCommerce shopping gives you a personalized U.S. shipping address to which retailers can mail purchased items, and then arranges for delivery to your home country. Visa cardholders in Australia, Bahrain, Canada, China, Kuwait, New Zealand, Oman, Qatar, Russia, Saudi Arabia and UAE can now register with “Borderlinx” (www.borderlinx.visa.com) for free and is offering a 10% savings for Visa cardholders in select countries during promotion periods. Read all post…

Business credit card rewards programs offer additional incentives for business owners to use their card, which already offers a host of advantages. Although it’s not advisable to select a credit card on a rewards program alone (as factors such as interest rates, fees, repayment terms, and the needs of the business are certainly more important), after choosing a suitable business credit card, it’s a good idea to investigate its rewards program and what it has to offer. If the decision does come down to what types of rewards are offered with the card, consider choosing between one of the following three business credit card rewards programs.

Cash Back Rewards

This is by far the most popular type of rewards program offered with business credit cards, primarily because it offers unprecedented control in regards to how the rewards money is spent. Wit

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Are you a consumer that knows quite a bit about credit cards? Perhaps you even pay off your balance each month, but are looking for a new card with a better deal? In a recent study it was found that many credit card companies are turning away the better consumers, declining new products because they know this consumer will not be profitable in regards to repayments.

Credit card companies make their money with late fees, missed payment fees, interest on purchases, balance transfers, and cash withdrawals. A consumer that pays their account in full each month is never charged interest because there is a 58 day free interest period with most cards.

Since lenders want to make money they tend to look at the riskier individuals, charge them more interest and make as much money as they can. However, this can also work against the credit card companies.

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