Different credit scores on different apps

[anthonyprite]

Let me preface this by saying that I am completely financially illiterate. I’m trying to self teach myself after getting into some trouble.

I bank with BMO. On my BMO app I am seeing a credit score of 727, which according to the app is really not good.

I also have the Borrowell app which I got about 3 years ago when I rented a place and the landlord required a credit check (my first time ever seeing what my score was). This app currently states I have a 799 score, which apparently is pretty good.

My question is.. which one is the “true” score? I would have to guess it’s the BMO one. Also, why is there such a big discrepancy? If I attempt to purchase a home or something in the near future, which score would be used?

 

[audmanout]

@anthonyprite OK Transunion used credit karma and Bhullar well use Equifax and they’re totally free and you’ll be very surprised how accurate they are. They’ll give u an idea you can get a free copy of each credit report once a year for free which is the legit credit report and are hard to read. I just a lot of numbers and code but They’ll give u an idea general idea 739 is a good score so I wouldn’t worry about that you know it’s not the best but you can fix that just get a credit card and use it to buy stuff and then just pay it off the same hour use it you are, but you’re literally to your credit report or score go up

but hard credit hits stay on your record for like seven years whether they’re bad or not Cut, so yeah I usually cable companies Internet companies cell phone companies are pretty bad for doing a hard check that stays there good or bad for spec I said seven years. If any of them do you have a mistake or a hit on your credit report take care of that because there they are the worst you’re going to 30 years down the road applying ve mortgage nope they won’t let you get it because those people you know, put a negative thing on there or incorrect so definitely worth checking but yeah you ask anything that you ever sign does it require a hard check and is it worth it because a lot of the time if it’s better to go to another company or stay where you are because like I said hard credit checks stay there for seven years like I had a electricity in my name it’s still on there it was approved with flying colours but I didn’t like it being there but also you know Those other debts they follow you and trust me. Because you can think that you don’t owe something or everything correct because the government runs in whatever it’s not true it’s up to you to fix your credit report if there’s a mistake and is it hard to get them to acknowledge it, but catch it early enough but if it’s something weird looking, it’s probably not right for. I should mention the two big credit bureaus. were charged several times over the last couple decades for being basically malicious and stealing money and information, etc. etc. they were sued like more than once but yeah.

 

[ccscott61]

@anthonyprite None of the scores you have access to see will be used by any lender. Those are not the actual scores banks/lenders will see / use.

Use what you see as a guide, but in reality it doesn't mean anything for lenders... Your true score will vary.

I've seen actual scores lower by up to 40 for clients.

 

[kevinsim]

@anthonyprite There are two credit bureaus in Canada, Equifax and Transunion. Borrowell pulls your Equifax credit report and uses their own algorithm to determine a score for you. BMO does the same but with Transunion.

These scores ultimately don’t mean much since it’s their own algorithm. A lender will use their own algorithm based on the credit reports from the bureau(s) to determine a score for you. Furthermore, a score past 700 doesn’t mean much in Canada like it does down south of the border where they get preferential interest rates as their scores go up.

Checking your score is mostly just useful to make sure the credit report doesn’t have any wrong information, eg accounts open you didn’t know about (potential identity theft) or missed payments.

 

[theokayman1]

@anthonyprite Be less concerned about your credit score and more on your net worth. That's your assets less any liabilities.

Lenders use your credit score as a means to determine how likely you will pay them back. That, in combination with your income is how they determine whether they'll approve you.

If you were to inherit a million dollars, you're credit score would be unaffected. It would likely go up if you were to pay off your debts though.