Why do I have different credit scores? (2024)

FAQs

Why do I have different credit scores? ›

Why on earth is that? Because the major credit bureaus — Experian, Equifax, and TransUnion — may have slightly different credit information on any one person, and credit scoring models vary. Credit scores are an important financial metric to keep track of throughout the year.

Your credit scores may vary according to the credit scoring model used, and may also vary based on which credit bureau furnishes the credit report used for the data. That's because not all lenders and creditors report to all three nationwide credit bureaus. Some may report to only two, one or none at all.

Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.

The three credit bureaus, Experian, Equifax and TransUnion, track credit histories for individual consumers. Each credit bureau assigns consumer credit scores based on the information they receive from creditors. This means a consumer could have a different FICO score from each of the credit bureaus.

Like all credit-reporting agencies, TransUnion and Equifax use proprietary scoring models. And while credit scores are typically based on the same or similar factors — including your payment history and number of accounts in good standing — each credit-scoring model can weigh those factors differently.

However, the information they collect and how they report it can differ. 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.

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).

Is FICO 8 or FICO 9 better? ›

Which is better: FICO score 8 or 9? FICO Score 9 is slightly more forgiving than FICO Score 8 since paid-off debt in collections no longer factor in, medical debts are treated differently, and consumers get more help with their credit when their rent payments are reported to the credit bureaus.

The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.

The base FICO score is also called FICO Score 8 or 9. It's not designed specifically for auto loans, but many lenders use it. It's a number between 300 and 850, and a higher score means that a person is more likely to make loan payments on time.

Equifax and Experian are the most commonly used credit bureaus by auto lenders. They offer services that are directed specifically at the auto industry, and each gets a portion of their revenue from the industry.

The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.

According to Darrin English, a senior community development loan officer at Quontic Bank, mortgage lenders request your FICO scores from all three bureaus — Equifax, Transunion and Experian. But they only use one when making their final decision. If all of your scores are the same, the choice is simple.

One credit bureau isn't more accurate than another, rather, they may simply have different methods of calculating your credit score. It's important to note that all three bureaus are used widely in the U.S. None of them are more “important” than the others.

FICO scores are generally known to be the most widely used by lenders. But the credit-scoring model used may vary by lender. While FICO Score 8 is the most common, mortgage lenders might use FICO Score 2, 4 or 5. Auto lenders often use one of the FICO Auto Scores.

All three major credit bureaus — Experian, Equifax, and TransUnion — are more alike than they are different, and any variations in their data are usually minor. Equifax is the largest credit bureau in the U.S., but TransUnion and Equifax are thought to be just as accurate and important.

A late payment was reported

If you've recently missed a payment, it could cause a drop in your credit score. Your payment history is another important credit score factor. If you look at your credit reports, you should see your history of payments for each account listed.