The PLUS Credit Score System: Should You Avoid It?

Anyone who has been online recently has seen the many offers for free credit scores cluttering the screen. They all promise to be free, quick and easy, which is probably true. The only problem is, there are multiple credit score systems out there, but only one that lenders really care about. That is your FICO score.

What is the PLUS Credit Score System?

One of the less-used scoring systems is the new PLUS credit score system. This new credit score system is legitimate, but it is new and not fully adopted by lenders. People who rely on the PLUS credit score system are doing so at their own risk because the score may not be accepted. If you rely on your PLUS credit score you could be in for some serious surprises when it comes time to take out a loan.

Who Issues the PLUS Credit Score?

The PLUS score is issued by the Experian Corporation, one of the three big credit bureaus that monitor and evaluate all of Americans’ debt and loan repayment activity. The PLUS credit score system was designed to rival the FICO system, but it has not been embraced as the industry standard. The PLUS system uses different criteria for evaluating your credit report and then generates your credit score.

Don’t Rely on Your PLUS Credit Score Only

Before you pay any credit monitoring website to see your credit score, look to see which credit scoring system they’re using. If it is any other names than FICO, be aware that that credit score may not be accepted by lenders. You can also confirmed with the lender to see whether they will accept the non FICO score as well – especially if you do find a monitoring credit service that you like that have good discounts.