Help me understand the huge discrepancy between my FICO scores from different companies? (2024)

FAQs

Help me understand the huge discrepancy between my FICO scores from different companies? ›

Lenders report credit information to the credit bureaus at different times, often resulting in one agency having more up-to-date information than another. The credit bureaus may record, display or store the same information in different ways.

Keep in mind, there are dozens of credit-scoring models out there that may calculate your score a little differently. Scores are calculated using different credit reports. Some lenders report to all three major credit agencies, but others report to only one or two.

When the scores are significantly different across bureaus, it is likely the underlying data in the credit bureaus is different and thus driving that observed score difference.

There is no “best” credit bureau—all three bureaus can offer helpful information and tools to help you make financial decisions.

Credit scoring models can weigh certain information in your reports more heavily than other credit score factors. For example, one scoring model may put more emphasis on total credit usage than others. Because there are varied scoring models, you'll likely have different scores from different providers.

Different websites and credit bureaus use different models. They use these to calculate your credit score. Each model may generate a slightly different score. This leads to discrepancies across platforms.

Which score is more accurate? Neither your TransUnion or Equifax score is more or less accurate than the other. They're just calculated from slightly differing sources. Your Equifax credit score is likely lower due to reporting differences.

There isn't one credit score that's necessarily more accurate than another. Your credit scores depend on the information from lenders and creditors in your credit reports. But different credit-scoring models may take different factors into account or weigh certain factors more heavily than others.

Although VantageScore's system is accurate, it's not the industry standard. Credit Karma works fine for the average consumer, but the companies that will approve or deny your application are more likely to look at your FICO Score.

Your FICO^® Score uses the information on your credit reports to calculate your FICO Score, so inaccurate or incorrect information on your credit report can hurt your score. All disputes with Equifax are handled online. All disputes with Experian are handled online.

Which credit score company matters most? ›

FICO: Originally named Fair Isaac Corporation, FICO developed the modern credit-scoring model in 1989. To this day, its scores are some of the most widely used. FICO claims its scores are used by 90% of top lenders.

Equifax, one of the 3 major bureaus, has the strongest of the 3 offerings. Users can access credit reports from all 3 major bureaus, and Equifax has one of the best packages of tools and resources of any of the sites reviewed.

Of the three main credit bureaus (Equifax, Experian, and TransUnion), none is considered better than the others. A lender may rely on a report from one bureau or all three bureaus to make its decisions about approving a loan.

There are several versions of VantageScore and FICO, and each uses a different scoring model. For example, a lender will likely use an older version of FICO for a mortgage application, while a consumer site might rely on the latest version of VantageScore.

In general, a “good” credit score when you check it on TransUnion's site is from 720 to 780. An “excellent” score from TransUnion is over 781 (using the VantageScore^® 3.0 model).

For the majority of lending decisions most lenders use your FICO score. Calculated by the data analytics company Fair Isaac Corporation, it's based on data from credit reports about your payment history, credit mix, length of credit history and other criteria.

For example, some creditors may supply information to one bureau but not the other. As a result, your Experian and Equifax credit reports may be different and the credit scores that are derived from them may differ, as well.

Since each agency independently determines your credit scores based on the information in their individual databases, there may sometimes be slight differences. Some lenders also only report to one or two credit reporting agencies, which means your credit history could look different from agency to agency.

Why is my FICO® score different from my credit score? Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.

Credit card issuers and lenders may use one or more of the three major credit bureaus—Experian, TransUnion and Equifax—to help determine your eligibility for new credit card accounts, loans and more.