Why is My TransUnion Credit Score Lower Than My Experian Score?

Having a lower credit score with one credit bureau compared to the others is an unfortunately common situation that leaves many consumers scratching their heads. Most people expect their scores from Equifax, Experian, and TransUnion to be roughly equal. So what gives when one score trails behind?

In particular many folks find their TransUnion scores lagging behind their Experian and Equifax scores. If your TransUnion score is lower than your Experian score you’re probably wondering why and what can be done. Let’s break it down.

Why the Discrepancy Between TransUnion and Experian Scores?

While the three major credit bureaus all use FICO scoring models to calculate credit scores, they don’t use the exact same formula. So even with identical credit information, you could end up with three different credit scores.

There are a few key reasons why your TransUnion score may be lower than your Experian score:

More Inquiries on TransUnion Report

Hard inquiries happen when you apply for new credit – a credit card, loan, etc. Too many inquiries in a short period can ding your scores with all three bureaus.

But if TransUnion’s records show more recent inquiries than Experian or Equifax, that could drag down your TU score. Each bureau may not get inquiries reported to them at exactly the same time.

Higher Balances Reported to TransUnion

The credit bureaus don’t always receive updated account balance information simultaneously. If your latest card and loan balances haven’t been reported to TransUnion yet, but Experian has the fresher figures showing you paid down balances, that could impact the scores.

One Bureau Missing Positive Info

You may have an account that’s reporting normally to Experian and Equifax but not showing up on your TransUnion report. If it’s an older account in good standing, its absence could lower your TU score

Disputing and getting positive accounts added to your TU report could help align the scores.

Differences in Credit Mix

The makeup of credit accounts on your reports also influences scores with each bureau. Say you have more installment loan accounts on Experian but more revolving credit accounts on TransUnion. That mix discrepancy could move one score higher than the other.

How to Check for Score Discrepancies

When you notice a lower score with one bureau, getting updated full credit reports from AnnualCreditReport.com is the first step. Compare each bureau’s report line-by-line to spot differences that could be impacting your scores differently:

• Number of recent inquiries
• Specific accounts reporting or not reporting
• Most current account balances
• Credit mix – installment, revolving, etc

Also confirm the scoring model for each score Is TransUnion providing a VantageScore while Experian shows a FICO Score? Make sure you’re comparing apples to apples

Online services providing free scores often use VantageScore, while lenders most commonly rely on FICO Scores. The scoring models calculate scores differently, so a legitimate discrepancy between your FICO and VantageScore is expected.

How to Improve a Lower TransUnion Credit Score

Once you’ve identified why your TransUnion score lags behind Experian, you can start taking steps to align the scores:

Reduce Hard Credit Inquiries

Cut back on applying for new credit if inquiries are disproportionately weighing down your TransUnion score. Give it some time for recent inquiries to have less impact as they age. Their negative effect on scores lessens over time.

You may also opt to dispute any inquiries on your reports that you don’t recognize or were made without your authorization.

Pay Down Balances

Knock down credit card, auto loan and other balances to lower amounts reported to the bureaus. Zero balances are ideal if you can pay accounts off entirely.

Even if Experian shows lower balances than TransUnion, keep paying down balances across all accounts. Lower balances will eventually be reported to all three bureaus and reflected in your scores.

Add Positive Accounts

Request credit bureau disputes to get positive accounts that are missing from your TransUnion file added to your TU report. Verifying their appearance on Experian/Equifax will help support your dispute.

Opening new credit accounts in good standing can also improve your TU credit mix. But go slowly – spacing out applications over time to minimize inquiries.

Monitor Credit Regularly

Check each of your three credit reports at least annually via AnnualCreditReport.com to ensure they remain accurate and aligned. Dispute any errors immediately to prevent issues from dragging down one score.

Being proactive helps you catch discrepancies with bureaus early before they significantly impact your scores. Monitoring credit is also essential for detecting fraud or identity theft as soon as possible.

Wait It Out

For minor score discrepancies between bureaus, time may be the simplest remedy. As credit information updates and synchronizes across your reports, the scores will eventually normalize without any action from you. Patience and monitoring ensures they align correctly.

When to Focus Less on Score Differences

While having matching excellent scores with all three bureaus is ideal, minor variances of even 20+ points are generally not a major concern.

Lenders will often focus on your middle score when evaluating your creditworthiness for a loan or credit card. Or they may choose to use only one bureau’s report and score anyway.

For example, Discover card applications only check your Experian credit report. So if your Experian score is in good shape but TransUnion is lower, you’re likely still in a strong position credit-wise.

The more critical scenario is when your lowest score with any bureau starts dipping below 700 or under the credit thresholds set by lenders. At that point, bringing up the lagging score becomes high priority to qualify for competitive rates.

The Takeaway

Don’t panic if your TransUnion credit score is slightly lower than your Experian score. Look closer to determine what factors are at play, and focus on those you can improve. Patience and diligently building your overall credit history will align your scores in the long run.

Monitor all three credit reports routinely to catch any major discrepancies early. But if your scores are all in the good to excellent range, small differences between bureaus are generally not something to stress over.

A FICO score can be higher than your TransUnion score due to differences in scoring models, how credit information is reported, and timing of updates. FICO scores, widely used by lenders, are based on specific scoring models (like FICO 8, 9, etc.) and credit reports.