Dozens of credit scores may exist, but they must share a commonality.

The idea that you only have one credit score isn't true.

A common misconception about credit scores is that they are based solely on payment history, according to John Ulzheimer, a credit expert who previously worked for FICO and Experian.

"A credit score is not always a three-digit number and can vary across different websites, so it's important to understand that a 750 score on one website may not necessarily be accepted on another."

Your credit score may be generated by your bank, another lender, or a reputable finance website like Credit Karma or Credit Sesame using reports from any of the three national credit bureaus - Experian, Equifax, or TransUnion, according to him.

"Your FICO score is just a variation of your credit score, which is generated from your Experian credit report and another one from your Equifax. Since your credit reports aren't the same, your scores won't be the same."

If you're not aware that you have multiple credit scores, the difference in numbers can cause confusion or even mistrust, says Ulzheimer.

"He says, 'I went to a website that says my credit score is 750, but the car dealership is telling me something different, so they must be lying or trying to charge me more interest,' but in reality, they're just using a different credit report."

Why you should check multiple credit scores

Experian defines the FICO score ranges as poor, fair, good, very good, and exceptional, with a score falling anywhere between 300 and 850.

• Poor: 300 to 579
• Fair: 580 to 669
• Good: 670 to 739
• Very good: 740 to 799
• Exceptional: 800 to 850

Your credit scores should not vary significantly, as stated by Ulzheimer.

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"He advises that your scores should be within 25 to 50 points, with no significant variation, to accurately reflect your creditworthiness."

Check your credit report and credit score for free

It may be necessary to verify credit reports for errors if there are significant differences in FICO scores across different credit tiers, according to Ulzheimer.

Since there are only three major credit reporting agencies, you have fewer credit reports available to you. However, by law, you're entitled to one free credit report from each of the credit bureaus every year. Additionally, you can check your credit report online for free once a week. To access your free credit report, visit annualcreditreport.com.

According to the Consumer Financial Protection Bureau, checking your own credit report doesn't negatively impact your credit score as it's not the same as when a lender pulls your credit.

Your credit report and credit score are different, and while the law doesn't guarantee a free credit score, you can monitor it for free through your bank or a personal finance website like Credit Karma or Ulzheimer.

"You can obtain your credit score for free from most of your lenders. However, if you choose to purchase it from a third-party source, you are essentially wasting your money as there are numerous places now where you can get it for free if you are willing to ignore a few marketing emails."

Understanding your credit standing can aid in comprehending what lenders consider when evaluating your creditworthiness for a new credit card or mortgage.

Understanding your credit report and scores makes you a more empowered consumer when applying for a loan, according to Ulzheimer.

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