Your credit scores can differ for many reasons, including which scoring model is used, which credit report is used and timing of when score updates are made.
Your credit scores can vary depending on the type of credit score, the credit report it scores and when the score is calculated. Its common for someone to have many different credit scores at the same time. This makes sense when you understand what credit scores are and how companies use them. Plus, youll find out why some basic tips for managing your credit can improve all your credit scores at the same time.
Having good credit is important for getting approved for loans and credit cards with the best terms. But consumers are often confused when they check their credit score and see different numbers from different sources. This article will explain why you can have three different credit scores and how to make sense of them.
What are the Three Main Credit Bureaus?
There are three major national consumer credit bureaus that keep records on your credit history
- Equifax
- Experian
- TransUnion
These companies receive information about your credit accounts and payment history from lenders banks collection agencies, and the courts. They each independently compile this data into a credit report.
When you apply for new credit, such as a mortgage, auto loan, or credit card, lenders will pull your credit report from one or more of the bureaus to evaluate your creditworthiness.
Each Bureau Calculates Its Own Credit Score
In addition to the credit report, each bureau also calculates its own proprietary credit score based on the data in your credit report. The most commonly used credit scores are:
- FICO Score from Fair Isaac Corporation
- VantageScore from the three credit bureaus
So even if you have the exact same credit history information at two different bureaus, their credit scores for you may differ slightly due to their own formulas and scoring models.
Main Reasons for Credit Score Differences
While your three credit scores are usually in the same ballpark, there are a variety of factors that can cause bigger discrepancies:
1. Incomplete Information
- Creditors report your credit information voluntarily – they don’t have to report to all three bureaus.
- One bureau may have unique or more up-to-date info if creditors only report to them.
- A late payment only reported to one bureau can lower that score.
2. Timing Differences
- Creditors report new activity at different times.
- One bureau’s score may temporarily be higher if new paid off debts or credit increases are reported to them first.
3. Credit Report Errors
- Errors only appearing in one bureau’s report can unfairly lower that score.
- One study found 44% of consumers had an error in their credit report!
4. Credit Inquiries
- When you apply for new credit, the resulting inquiry can temporarily lower your score.
- If a lender only reports inquiry to one bureau, it will affect that score more.
Which Credit Score Matters Most?
While all three scores are important and lenders may check one or all three, FICO Scores are used in over 90% of consumer lending decisions.
Within the FICO family, you’ll want to check the score version most commonly used for the credit product you plan to apply for:
- FICO 8 Score – Widely used base score for credit cards, personal loans, etc.
- FICO Auto Score – Used in auto and vehicle loan decisions.
- FICO Mortgage Scores – Versions 2, 4, and 5 used for home loans.
Tips for Managing Your Scores
- Check all three of your credit reports yearly and dispute any errors to avoid unfair dings to your score.
- Reduce your credit utilization ratio on cards below 30% of the limit.
- Apply for new credit sparingly to limit inquiries.
- If one score seems lower, check that bureau’s report for potential issues.
- Focus most on improving your FICO 8 score for general creditworthiness.
By monitoring all three of your credit reports and scores, staying on top of payments, and keeping your utilization low, you can work to raise your scores with all three bureaus over time. While differences will likely remain, the gaps should narrow as your history improves.
Frequently Asked Questions
Which credit score do most lenders use?
Over 90% of lenders use a version of the FICO Score when evaluating your credit for a new application. FICO Scores range from 300-850.
If my scores differ a lot, what does that mean?
Big differences between your three credit scores likely mean you have incomplete credit information at some bureaus or errors affecting one score. Check all reports for mistakes.
How often should I check each credit score?
Check each of your scores and credit reports at least once per year. Checking more often lets you quickly dispute errors and monitor changes.
Can I have a perfect 850 score?
A perfect 850 FICO Score is possible but rare, even for consumers with flawless credit management. A score over 800 is considered exceptional credit.
Do inquiries when I check my own score hurt it?
Checking your own credit scores does not lower them – only inquiries by potential creditors when applying for credit have an impact.
The Bottom Line
Having three different credit scores can be confusing, but is normal due to the differences in how each credit bureau calculates their scores. While scores can vary, focusing on raising your FICO 8 score and correcting errors that may unfairly ding your credit is the best way to improve your credit health over time. Monitoring all three ensures you catch any potential issues.
What Is a VantageScore Credit Score?
In 2006, Experian, TransUnion and Equifax created VantageScore, an independently managed company that develops credit scoring models. Since then, VantageScore has released five versions of the VantageScore credit score: VantageScore 1.0 through 4.0, and VantageScore 4plusâ¢.
The VantageScore 4.0, released in 2017, considers trends in a consumers credit history. The VantageScore 4plus was announced in May 2024 and can consider data from connected bank or credit card accounts, if you choose to link those accounts.
The VantageScore 3.0 and newer models use a credit score range of 300 to 850. The VantageScore credit score also suggests groups that indicate whether someone has poor to excellent credit.
What Is a Credit Score?
A credit score is the result of a computer program analyzing a persons credit report and predicting how likely they are to miss a bill payment in the future. Specifically, many credit scores try to predict the likelihood that someone will miss a payment by at least 90 days in the next 24 months.
Creditors could try to analyze your credit report to come up with their own prediction, and some creditors do create their own custom scores. However, many creditors use a FICO® ScoresΠor VantageScore® credit score to help them make decisions.
Many FICO and VantageScore credit scores range from 300 to 850, with a higher credit score indicating the person is less likely to miss a payment. Creditors might set a minimum credit score requirement for their loans and credit cards. Beyond that, applicants with higher credit scores might qualify for more favorable terms, like lower interest rates and fees.