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So, does anyone else have concerns about private companies having the power to determine credit score?

I recently checked my credit. Something I do every 6 months. Between the 3 companies (Experian, Equifax, and Transunion) I have 3 different scores.
Experian-655
Equifax-645
Transunion-745

We recently needed to buy a new vehicle. I went to my credit union and they offered me a higher interest rate because they use Equifax.

I went to a larger natinal bank that uses Transunion and they gave me a lower rate.
My debt to income ratio is 33%. Which is good. Lender said it was a solid healthy rate.

Answer Question
 
Anonymous

Asked by Anonymous at 3:25 PM on May. 6, 2010 in Politics & Current Events

Answers (12)
  • Both Experian and Equifax have me down as still owing on a car and 2 credit cards I paid off 4 months ago. I just feel these large discrepenices can potentially play havoc on the consumer.
    Anonymous

    Answer by Anonymous at 3:27 PM on May. 6, 2010

  • You can correct the incorrect reports...contact the companies. Credit scores have always been determined by private companies.
    gdiamante

    Answer by gdiamante at 3:30 PM on May. 6, 2010

  • Honestly I feel that a persons credit score is their own responsibility. Tips and tricks on how to up your score are easy to find and do. Each of those companies use their own formula on figuring the score but they all use the same basic info. We always check ours before we do any kind of credit app (800+ right now). The frustrating issue with credits scores isn't what interest rate you get on a loan but the fact that it can mean yes/no on a new job, yes/no on getting insurance.

    emptynstr

    Answer by emptynstr at 3:32 PM on May. 6, 2010

  • I have no problem with private companies determining the scores, I have problems with the scores being used for anything. It's a completely arbitrary bs number that can be defrauded and impacted by things you cannot control. It's bad enough that banks get lazy and give the score as much weight as they do (as a representation of the true overall picture it sucks), but the fact that employers use it to decide to interview and/or hire people should be illegal.
    NotPanicking

    Answer by NotPanicking at 3:44 PM on May. 6, 2010

  • The consumer needs to be aware of their credit score at all times... When you engage in doing businesses with private companies, then you need to be prepared for iligently maintaining the professional relationship.
    grlygrlz2

    Answer by grlygrlz2 at 3:47 PM on May. 6, 2010

  • Opps, hit send too fast... You must be diligent, but you also need to understand they are human and computers. Errors will occur and their errors (just as any you make) can impact your score... Stay on top of your credit and their scoring!
    grlygrlz2

    Answer by grlygrlz2 at 3:49 PM on May. 6, 2010

  • but you also need to understand they are human and computers. Errors will occur and their errors (just as any you make) can impact your score.

    You also need to understand that creditors will re-submit everything you have deleted if they want to and there is no penalty for it until a lawyer gets involved and can prove you don't still owe/ever owed the debt. Up until that point, there are people paid to do nothing all day but put stuff back on the system as soon as they get the notice about the acct being deleted.
    NotPanicking

    Answer by NotPanicking at 4:06 PM on May. 6, 2010

  • As NP said, I have problems with the scores being used for anything.......but the fact that employers use it to decide to interview and/or hire people should be illegal. This is what I believe, also. The only thing it should be used for is for borrowing money, and even then, it isn't always such a good predictor of a person's ability to pay.
    29again

    Answer by 29again at 4:49 PM on May. 6, 2010

  • The only way I would be concerned is if they could start making up scores based on how they feel. There are rules and I think they can make rules to make it eaiser to have a higher score like Not punishing someone for getting rid of a card. If they slash your limit how does that effect your score? I feel that somethings need to change but that overall it's OK.
    SylviaNCali

    Answer by SylviaNCali at 4:57 PM on May. 6, 2010

  • Your Credit Score is usually accurate but if you have questions and think something is wrong, go to an officer at your bank and they will help you out. It is not a big conspiracy or someone "out to get you"....you score shows what your payment record is.
    Anonymous

    Answer by Anonymous at 5:50 PM on May. 6, 2010

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