Who calculates credit scores?
When a lender or a credit grantor requests your score, it is calculated by a computer at the lender’s location, by a third-party service provider such as a mortgage reporting agency, or may be applied at a consumer reporting agency. The score is one of many pieces of information the lender and creditor may use in evaluating your credit application. Community Empower uses a sophisticated method to calculate your score to most closely match your true mid-score.The mid score is the middle score of the three reports a lender will often retrieve when you apply for a home loan.
Credit scores may come from several sources. Lenders may request that a credit score be provided along with your credit report. Credit reporting agencies provide the service of applying the credit scores from a number of credit score developers. Lenders specify which credit score they want delivered with the credit report. Credit scores may also be calculated by mortgage reporting companies that compile your credit reports from each of the national credit reporting companies and then deliver the combined reports and scores to the lender. Lenders may also apply their own, proprietary scores after receiving your credit report.
