In the U.S., there are three national credit bureaus (Equifax, Experian and TransUnion) that compete to capture, update and store credit histories on most U.S. consumers. While most of the information collected on consumers by the three credit bureaus is similar, there are differences. For example, one credit bureau may have unique information captured on a consumer that is not being captured by the other two, or the same data element may be stored or displayed differently by the credit bureaus.
A predictive FICO scoring system resides at each of these credit bureaus from which lenders request a FICO® Score when evaluating a particular consumer's credit risk. The FICO scoring system design is similar across the credit bureaus so that consumers with high FICO Scores on bureau "A's" data will likely see a similarly high FICO Score at the other two bureaus. Conversely consumers with lower FICO scores at bureau "A" will likely get low FICO Scores at the other two bureaus when the underlying data is the same across the bureaus.
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. However, there can be score differences even when the underlying data is identical as each of the bureau's FICO scoring system was designed to optimize the predictive value of their unique data.
Keep in mind the following points when comparing scores across bureaus:
Not all credit scores are "FICO" scores. So, make sure the credit scores you are comparing are actual FICO Scores.
The FICO scores should be accessed at the same time. The passage of time can result in score differences due to model characteristics that have a time based component. Comparing a FICO score pulled on bureau "A" from last week to a score pulled on bureau "B" today can be problematic as the "week-old score" may already be "dated".
All of your credit information may not be reported to all three credit bureaus. The information on your credit report is supplied by lenders, collection agencies and court records. Don't assume that each credit bureau has the same information pertaining to your credit history.
You may have applied for credit under different names (for example, Robert Jones versus Bob Jones) or a maiden name, which may cause fragmented or incomplete files at the credit reporting agencies. While, in most cases, the credit bureaus combine all files accurately under the same person, there are many instances where incomplete files or inaccurate data (social security numbers, addresses, etc.) cause one person's credit information to appear on someone else's credit report.
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.
FAQs
All of your credit information may not be reported to all three credit bureaus. The information on your credit report is supplied by lenders, collection agencies and court records. Don't assume that each credit bureau has the same information pertaining to your credit history.
Why are my FICO scores different for the 3 credit bureaus? ›
For example, lenders can choose to report to one, two or all three agencies. Because of this, the information in your reports can vary, which is partly why your scores can differ too. There are also many scoring models. VantageScore® and FICO® are two of the most popular.
Why is my FICO score so different from my other scores? ›
FICO® Scores are the credit scores used by most lenders, but different lenders may use different versions of FICO® Scores and some lenders (including Regions) may use different versions of FICO® Scores for different credit products, as discussed more fully here.
Which credit bureau is most accurate? ›
There is no “best” credit bureau—all three bureaus can offer helpful information and tools to help you make financial decisions.
Why is my FICO score so much different than Credit Karma? ›
Why Are My Credit Karma and My FICO Scores Different? VantageScore and FICO are the two big rivals in the credit rating business. Credit Karma uses VantageScore. Their models differ slightly in the weight they place on various factors in your spending and borrowing history.
Which credit score is most accurate, TransUnion or Equifax? ›
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. Nonetheless, a “fair” score from TransUnion is typically “fair” across the board.
Why is my Experian score 100 points lower than TransUnion? ›
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.
Do lenders use FICO or Vantage? ›
It's not the complete financial picture, but lenders consider it when evaluating you for lines of credit and insurance. But there are multiple versions of your credit score. For the majority of lending decisions most lenders use your FICO score.
How can I find out my true credit score? ›
There are a few main ways to get your credit scores.
- Check your credit card or other loan statement. Many major credit card companies and other lenders provide credit scores for their customers. ...
- Talk to a nonprofit counselor. ...
- Use a credit score service.
Credit monitoring can help you detect fraud and track your credit scores. One way to do this is by using a free credit tool like CreditWise from Capital One, which lets you access your TransUnion credit report and VantageScore 3.0 credit score. Using CreditWise won't hurt your credit scores.
They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use. A VantageScore has the same credit score range as FICO, and uses some of the same information as a FICO score.
What is a good FICO score? ›
Is a FICO score of 8 good or bad? ›
FICO 8 scores range between 300 and 850. A FICO score of at least 700 is considered a good score. There are also industry-specific versions of credit scores that businesses use. For example, the FICO Bankcard Score 8 is the most widely used score when you apply for a new credit card or a credit-limit increase.
Why the three major credit bureaus may produce a different score? ›
Your credit score may be different because creditors don't always report to all three major credit bureaus. The type of credit scoring model used to calculate your score could also lead to a different score.
Which credit score is more important FICO or Experian? ›
Lenders use such a wide variety of credit scores (and versions of scores) that no single score is definitively the most important. The FICO® Score is used by 90% of top lenders, but there are at least 16 versions of that model in use.
Which credit bureau is the FICO score based on? ›
Don't be fooled.
It is owned and operated by the three credit bureaus - Equifax, Experian, and TransUnion - which together control the credit reporting system and far outweigh FICO in terms of market capitlization. FICO is the only independent check in the system.
Which of the three credit bureaus is most important? ›
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.
