CHICAGO, IL--(Marketwire - Oct 16, 2012) - Fall is for football and football's all about playing both offense and defense for the entire game. So is managing your overall credit. Go on the offensive and get a better understanding of your credit history and score and how it can help you qualify for the best interest rates on mortgages, auto loans, credit cards and more. Huddle up with TransUnion and learn how credit scoring works -- and why it is important to review both your credit report and VantageScore®.
While a football score can give you a pretty good idea of how the game is going, it you don't watch the entire game, you are going to miss a lot. It is the same with your credit. Responsible past credit behavior, a healthy credit score and understanding your debt picture all play crucial roles in achieving your overall financial goals. So reviewing your credit report and knowing your VantageScore and how you compare to other consumers is vital.
"There are many different scoring formulas used by lenders. Even though nearly every major lender in the U.S. provides information to the three national credit reporting companies, not all creditors report to all three all the time. Each may report on a different day within a 30-day cycle. So even if the same formula is used to evaluate your three reports on the same day, your credit information may produce a different score for each.
"There is no one score or 'scoring formula' that's used all the time. And the specific formula a lender chooses is beyond your control," said Heather Battison, senior director at TransUnion responsible for consumer education. "What's within your control is your ability to handle your credit obligations responsibly each month and take simple steps to keep yourself in good credit standing, including reviewing your own credit report and scores regularly to ensure each consistently paints you in the most accurate and positive light possible."
To help you better understand, TransUnion introduced a new and enriched way to help you manage your credit, with access to your VantageScore from all three credit reporting agencies. This provides everyone an easier and more convenient way to monitor, compare and understand your credit rating.
The VantageScore credit scoring system was developed jointly by the three major credit reporting companies -- TransUnion, Experian and Equifax -- to help make credit scores more consistent and predictable across the industry. Your VantageScore is a three-digit number ranging from 501-990 and includes corresponding letter grades, from A to F. It also allows lenders to score more consumers, even "rookies" with a limited credit history than was previously available.
A VantageScore credit score could still vary between the three credit bureaus, because even though they use the same scoring model, the information on individual credit reports may differ from bureau to bureau. That is why it is key to see and compare all three VantageScores -- and with TransUnion -- you will receive all three as part of your paid membership.
As with anything, practice makes perfect. Here are some practice tips to reaching healthier credit:
Payment history: A good record of on-time payments will help your credit.
Outstanding debt: High balances in relation to your credit limits can lower your credit score. Aim for balances under 35%.
Credit account history: An established credit history makes you a less risky borrower. Think twice before closing old accounts before a loan application.
Recent inquiries: When a lender or business checks your credit, it causes a hard inquiry and a slight ding to your credit score. Apply for new credit in moderation.
Types of credit: A healthy credit profile has a balanced mix of credit accounts and loans.
Don't fumble with your credit and get in the game today. Signing up is free and only takes a few minutes. Visit TransUnion.com to get started and to get your free TransUnion credit score today.
TransUnion Interactive, Inc. is a consumer subsidiary of TransUnion. As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion employs associates in more than 32 countries on five continents. www.transunion.com Follow us on Facebook.