Credit Scores

• There are a wide variety of credit scores, each with different strengths and weaknesses. The most widely used score, the FICO score, ranges from 300 to 850, with scores of 700 or higher representing good credit histories, according to the Federal Consumer Information Center. When you apply for a loan, the creditor might look at one or more of your scores to determine if you should get your loan.
  
  

Types of Scores

• Apart from the FICO score, so-named because it was created by the Fair Isaac Corp., creditors and consumers have access to a variety of types of scores. The VantageScore, for example, was created by the three consumer credit reporting agencies, Equifax, Experian and TransUnion. Other scores include the PLUS score, TransRisk score and CreditXpert score, each using slightly different calculation methods. According to Consumer Reports, the score provided by one company might indicate you are an excellent borrower, while a score provided by another might list you as merely an average borrower.
  
  

Updates

• Even if you and your creditor request the same credit score, your creditor may see a different score based on when you requested the scores. Credit scores change as credit reporting bureaus add new information to your credit report. If, for example, you received your score a week before applying for the loan and a new item has since been added to your report, the score the creditor sees might be different because it reflects new information.
  
  

Other Factors

• Even if the credit score your lender looks at tells the lender you are a safe borrower, that doesn't mean it will approve your loan application. Lenders also look at other factors, such as how much income you earn and how much debt you currently have. For example, if you have an excellent credit score but have a debt-to-income ratio of about 36 percent or higher, a mortgage lender is much less likely to give you a loan, according to Lending Tree.