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Therefore your Credit Score changes every time that you make an new application for credit to a lender, whether it is for a credit card, a loan or a mortgage.
Unfortunately, a lender will never ever tell you the credit score they calculate from your credit report because the complicated formula, which each lender uses to perform their own calculation, is their own commercial secret.
If your application were to fail because of the credit score they calculate, a lender may be able to give you some indicator as to why it failed, but they are extremely unlikely to go into any detail at all about your resulting credit score and how it was actually calculated.
EVERY LENDER COULD CALCULATE YOUR CREDIT SCORE IN A DIFFERENT WAY
Every lender will usually have a different credit score formula and so will calculate your score in a different way. This is the main reason why your credit score changes.
Unfortunately, this can mean that, even if the details on your credit report are exactly the same and lenders use the same credit report, your credit rating from each lender could actually be different.
This is a reason why sometimes one lender will accept a credit application from you while another one will not.
Even if the final credit rating is in fact the same each of the lenders may have a different way of interpreting your results and therefore may make entirely different decisions about you.
Don't Worry If Your Credit Score Changes - It's Normal!
If your credit rating is very good or very bad, then lenders are much more likely to make a decision that has the same effect on your application, whether positive or negative. It is in the area in between where decisions are likely to be more borderline and where the differences between lenders will have a bigger impact.
The score, which a lender calculates, could also lead to a different decision depending on the Credit Reference Agency, which provides them with your credit report. This is because the credit information held on you at each agency could very easily be different. This is another way in which your credit score changes.
For this reason alone you should make every effort to personally check your Credit Report at each of the agencies because one report may contain detrimental information, which could lower your credit rating and cause your application to fail when a lender uses that credit report.
A lower rating could also cost you more when repaying a loan because you may be charged a higher interest rate.
Always remember that it is really easy to get a Free Credit Score before you apply for a loan or mortgage or any other form of credit.
Get a FREE Credit Report and get access to your Credit Score...
Your credit report has a direct effect on how your credit score changes.
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