When it comes to breaking down the truth about credit scores, personal finance expert Suze Orman taught us a valuable lesson or two.
“This is the best question I've ever heard!” she laughed. “It makes no sense.” There are three credit reporting agencies: Experian, Equifax and TransUnion. Each one of these businesses gets information from the companies to which you pay your bills each month, whether it is for student loans, car payment, etc.
Why are there three different credit reporting agencies? “No idea,” Suze said. “It is such a money making opportunity for them!”
In order to receive your FICO score—a figure most creditors or lenders require—you have to get all three of these credit reporting agency figures from Experian, Equifax and TransUnion. Although Experian doesn’t even allow the general public to see their FICO score, this figure is still required by creditors.
If you want to go your scores for free, Suze recommends visiting www.creditkarma.com. However, for a FICO score, there’s only one place to go—myFICO.com—and you are required to pay to view your score.
Get one on one financial advice from Suze here.
For more advice on managing your money, see Suze's personal finance tips:
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