credit web-sites your scores and more!

Red Phoenix Nation, I hope when your eyes come upon my little blog you're doing well! Today, I'm chatting about all those web-sites that get blasted in your face about your credit. Who are they, what scoring system do they use and why do they seem wrong?!?!

All the sites are owned by one bureau or the other, that is first. I haven't found a site yet that isn't owned by a bureau with the exception of myfico.com I don't spend my days looking for them though, I'm not saying they don't exist.

I need to remind you that the bureaus are private record keeping companies that are for profit, big profit. That doesn't mean we have to dislike them, but we need to know how to use them. The scoring system that the bureaus use is called Vantage Scoring. I won't break down the method but it is very different then that of FICO or Fair Isaac Corporation. The Vantage Score was created to compete with our friends at FICO. The are selling you on a system that has little relevance to world of lending. That doesn't mean those web-sites don't offer purpose. If you're into monitoring your accounts and credit activity they often times can be of use.

If you're looking to monitor your credit and what lenders are using for score, then you need to head to www.myfico.com FICO is our friend, or at least mine! FICO is what 90% of banks and lenders use to evaluate risk. HENCE the confusion for people when they pull their score online then only to find out their scores are much lower when they talk to their lender.

The bureaus want to compete against FICO, they also want to make money. If they can sell you on their site and take your money on a monthly basis they've succeeded. They've also lured you into a false sense of security about your scores. Misleading? it depends on how you look at it and for what purpose you are using a bureau owned site.

What I don't like about those sites besides having to explain this topic daily?!?! Is their credit education piece. I'm not saying its wrong, but I'm not saying its correct. It is based on the Vantage System and that is so different than FICO. If you wanted the differences explained, well sorry it would be a chapter. My goal today was to inform you a few differences about the two and that there are two different scoring systems. I could go on and on but as I think of this topic more and more I might really go off. If you need me, please contact me anytime! I'm always around...

john@redphoenixco.com
www.redphoenixco.com