Did you know that you have many different credit scores?

credit score
Credit bureaus are private companies that compete with each other. So are the creators of scoring formulas.

May 06, 2022 – Hispanic Solutions Group

In order for you to make interesting decisions in your financial activities, today we inform you of an important dialogue between a consumer and a veteran specialist lawyer who guides her, and with the intention of sharing this dialogue, we literally transcribe what was referred to, as an example for users in general and says:

Have you ever covered the fact that the credit score a person receives from the reporting agencies is completely different from the one provided to lenders?

The difference I discovered was 819 vs. 710.

I’m a retired attorney who represented investors in securities arbitration for 20 years, so I’m not easily shocked or shocked by financial fraud, but I was.

Response: The fact that there are many different scoring formulas has come up frequently in this column. What you consider to be a fraud is actually a manifestation of capitalism.

Credit bureaus are private companies that compete with each other. So are the creators of scoring formulas. Lenders and other companies that use credit scores have many to choose from.

FICO is the leading credit scoring formula, but its rival VantageScore has gained market share in recent years, according to analyst studies

The data. – Both types of sheet music come in various versions. The latest version of FICO is FICO 10, although FICO 8 is still the most widely used score, I note that in the meantime, mortgage lenders tend to use much older versions of the FICO formula. Scores can also be changed for different types of loans, such as car loans or credit cards.

Credit reporting agencies have also created their own proprietary scores. What this means is that the same underlying data, what is on your credit report at a given credit bureau, can create significantly different FICO scores, depending on which FICO formula was used.

Even the same type of score, such as a FICO 8, could vary depending on what credit bureau information was used and when the score was drawn or created. Credit reporting agencies generally do not share information with each other. Also, the information on your credit reports is constantly changing as information is added or deleted.

So it’s not surprising that the score your lender used was different from the one the credit bureau gave you. What would have been surprising is if the number had been the same.

Dear Liz, I am 83 years old and have always worked and been a regular saver. I am in the unusual position of having amassed considerable wealth and, barring a financial or medical catastrophe, I probably have more assets than I will ever use.

Of course these assets will pass to my wife or other heirs on my death, but I would like to help them now. I am considering passing money on to my children and grandchildren. I find it hard to believe, but is it correct that I can give up to a total of $15,000 per year ($30,000 for a husband and wife) to my children and grandchildren in any given calendar year with no federal or state tax implications for any of them? the parts? Also, does the recipient have to be a close relative for this transaction to take place without creating a tax liability for either entity?

Answer: Right now you can give away millions of dollars without having to pay gift taxes. Gifts are tax-free for the recipient and they are not required to be relatives.

The $15,000 annual gift exemption limit is the amount you can give per recipient without having to file a gift tax return. You and your wife together could give $30,000 to as many people as you wanted without having to file such a return. If you have two married children who each have three children, you and your wife could give each family of five $150,000 or a total of $300,000 without having to file a gift tax return.

Gift taxes are not due until the amount you give away above the annual limit exceeds the lifetime gift and estate exemption limit, which is currently $11.7 million per person.

Finally. – Given your age and wealth, you should work with an experienced estate planning attorney to make sure your assets go where you want them after your death. The attorney can discuss smart gift strategies for your individual circumstances.

If you have any questions related to finances, credits in the United States and other related issues, but do not know who to turn to, contact us by going to Hispanic Solutions Group , writing to info@hispanicsolutionsgroup.com .

If you need to make an appointment you can ask here or accessing financial information on YouTube, the credit channel ,  our specialists in charge Jessica Aliaga-Froelke will be informing you of any concerns regarding this and other financial issues of general interest and guidance as in this topic, today we provide you with the following report so that you can make your most important economic decisions, also him We invite you to follow our social networks: LinkedIn , Facebook , Twitter , tiktok and instagram.