Why Do the Credit Bureaus Differ on Credit Scores?

Although most people think of a credit score as a single number, you have multiple credit scores. When you check your credit score through each of the three bureaus -- Experian, TransUnion and Equifax -- it is not unusual to obtain three different credit scores. There are a few reasons for the discrepancy.

Different Data

Each credit bureau maintains a separate file of data related to your credit history. One of the reasons you might end up with a different credit score at each bureau is because your reports are not all identical. This could occur if you have a credit account that reports to just one of the bureaus, or if your lenders report the most recent data to the bureaus at different times of the month.

Credit Score Formulas

When your credit scores are different, it might be because scores are generated by different credit scoring models. The FICO score is one of the popular scoring models, but the credit bureaus have also developed different models, including VantageScore. To complicate matters further, the FICO score is on a scale of 300 to 850, whereas VantageScore ranges from 501 to 990.

Specialized Credit Scores

Some lenders use a formula that differs slightly from the usual formula for that score. Consumer Reports lists FICO 98, FICO 2004, FICO 08, Industry Option FICO scores, NextGen FICO scores and FICO Expansion scores as six ways to calculate a FICO score. Some of these are specialized for different fields of lending. For example, the Industry Option FICO scores allows car dealerships to give extra weight to how a consumer has handled past car loans.

Considerations

When you apply for a loan or a credit card, you never know which credit score the lender will obtain. For large loans, such as mortgages, the lender will likely pull a few different scores to see how they compare. Your best strategy is to check your credit report with each of the three bureaus and ensure they all contain a complete file of accurate information about you. You can obtain a free credit report from every credit bureau once each year through AnnualCreditReport.com. If the lender only pulls one score and it is not as high as you expected, ask the lender to pull another to see how it compares before making a decision regarding your application.