Your 28+ Tacos Scores
Obviously, you know that when it comes to tacos 🌮, there are a lot of options. Sure, there are the basics like carne asada, al pastor, and carnitas, but you can pretty much ask your taquer@ to make you a taco out of whatever you want. Well, it turns out that our credit scores are kind of like that too.
Wait, how are credit scores like tacos? 🤔
Well, when someone wants to know your credit score, they go to FICO, which is a data analytics company. For our purposes, think of FICO as a taquer@ that sells credit score tacos. When you apply for a loan 🏦 or credit card 💳 or something else that requires a credit check ☑️, the lender goes to FICO and says, “Serve me up a Fulan@ de Tal credit score taco.” The information they get back from FICO in the form of your credit score helps the lender decide if they want to lend to you or not.
Now, most of us think that we have 3️⃣ credit scores because there are three major credit bureaus. Those credit bureaus are Experian, TransUnion, and Equifax. They’re like the carne asada, al pastor, and carnitas of credit scores tacos. The thing is that just like tacos, credit scores can be made up of all kinds of ingredients.
A basic FICO credit score taco includes information about credit utilization, credit mix, credit inquiries, payment history, and age of credit. But maybe a lender wants to know about your income, work history, debt-to-income ratio, or something else. They can ask for those things to be included and that is how it’s possible to have more than three credit scores. FICO alone can give you 28 credit scores.
Add to that that FICO is not the only credit score taquer@ around – there’s also VantageScore that you can access via Credit Karma – and you have even more credit scores. 🤯
OK, but how are you supposed to keep track of all of these credit scores? You can’t really, but you don’t have to. You can use the credit scores that you do have access to as a way to gauge how well you’re doing credit score-wise. It’s just good for you to know that lenders have a lot of information available to them when they are considering whether to lend to you or not.
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