The Difference Between The Credit Reporting Agencies and Credit Scoring Companies
Understanding credit scores shouldn’t be this difficult. But the system is set up such that it could not be more confusing.
Contrary to popular belief, and common sense, the Credit Reporting Agencies (CRAs) aren’t the companies that provide our credit scores as we know them. The CRAs simply track and store our payment history for the companies that pay to report it to them, and they then sell that information to companies that are willing to pay them for it.
Included in the list of companies that buy credit data from the Credit Reporting Agencies are the dozens of credit monitoring companies that millions of Americans pay on a monthly basis to have them tell them what they deem their credit scores to be. But the big problem is most of these 3rd party credit score resellers have their own proprietary scoring models that they use to generate their version of our credit scores and with so many various credit scoring models in existence, the discrepancy between the various credit scoring models can be flabbergasting. In fact, one of our new customers recently obtained her credit scores through 2 different credit scoring companies and she couldn’t believe that there was more than a 100 point difference between all 3 of her credit scores that the 2 companies were reporting. Unfortunately, this makes managing our credit reports even that much more challenging.
It’s things like this that Pegasus Credit Repair helps you to work through and fully understand. To participate in the Pegasus Credit Repair program, visit us at http://www.pegasuscreditrepair.com/.
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