Have you noticed how your credit score seems to fluctuate depending on where you have it checked? Well, don’t be surprised by this inconsistency. That fluctuation is because the United States has three major credit bureaus that independently calculate credit scores to ensure fairness. These include Transunion, Equifax, and Experian. All of these three also use several models for credit scoring.
FICO® Score is the most commonly used model for credit scoring although Vantage scores have also risen to popularity since its launch in 2006. The three credit bureaus are using a predictive scoring system to determine the credit risk of a consumer.
Although these three bureaus are using the same models, each of them has proprietary and small differences for calculating credit scores. But, the basis of the systems is the same across the three bureaus so a consumer with high scores on the data of one bureau will likely see the same high score at the rest of the two bureaus.
Why Do You See Different Credit Scores?
There could be several reasons why you might be seeing different credit scores from each of the three bureaus. The most common ones include the following:
The dates of the credit scores are not the same
Your credit score can change at any time. Since the data in your credit reports can get updated at different times at every bureau, a certain bureau might be missing one account or other details that might hinder or help your score. If you requested your credit report from one bureau two weeks ago, it is highly likely that it will be different next week depending on the new reports.
Different credit scoring models were used to calculate the scores
Similar to a fingerprint, all of the three bureaus are using scoring systems that are slightly different from each other. Although you know the basis for calculating your credit score, each model is slightly different from one person to another depending on the different lenders’ requirements and the person’s history. For instance, a car lender might use a completely different scoring model than a mortgage lender since both of them place more importance on specific different factors.
The details in your credit reports are different among the credit bureaus
It is actually a very common scenario than what you might think. There are lenders that report to the three bureaus but some might not even report to any of them at all. This is why it is always a wise idea that you go through your credit reports every now and then to check for errors because even the smallest mistake can easily impact your score.
At the end of the day, even if you see variations and differences in your credit scores, rest assured that all of these have been based on the information indicated in your credit reports. This is why you need to focus on what is in your reports as this can help you in building your credit as a whole.