What is a representative credit score based on?

A representative credit score is determined by taking the middle of three scores, known as the median score. This approach is used because it provides a more accurate reflection of a borrower's creditworthiness than simply relying on the average or lowest score. By selecting the middle score, it minimizes the impact of any anomalies or outliers in the credit data that could skew the average in either direction.

Using the middle score is particularly beneficial in cases where a borrower has credit reports from multiple credit bureaus, as different bureaus may report slightly different scores based on their own algorithms and the data they receive. Relying on the middle score helps lenders make more consistent and fair decisions regarding the credit applications they receive. This method acknowledges that while a borrower may have varied credit behavior reflected across different reports, the middle score will generally offer a reliable indication of their overall creditworthiness.