Why Do Credit Scores Differ?

Your credit score reveals how likely you can pay off your debt. Lending companies and banks sourced the rating from credit bureaus to figure out who can be granted with a loan, on what interest rate as well as how big based on credit limit. Creditors do this to assess the potential risk of borrower before lending money to minimize losses as a result of unpaid debt. The visual below clear up the confusion about the different credit scores set by the different credit bureaus and rating agencies: TransUnion, Experian, Equifax, FICO and VantageScore. See also the History of Credit Cards and the Descent into Credit Card Debt Hell.