23 Sep Why is My Credit Score Different on Different Websites?
“Why Are My Credit Scores Different” – we get this question quite often online, and for good reason, this can be confusing as well. You check your credit scores, but then a lender says your score is different. Or you get your credit score from one website and then on another, and the two are different.
There are mainly 4 main reasons Why Do You Have Different Credit Scores, and we’ll explore them in more detail here:
- Bureau: Credit scores are obtained from different credit bureaus
- Source: The company that developed the credit score might be different
- Model: The credit scoring model used might be different
- Timing: Scores are pulled at different times
Apart from that, we will also answer here “What’s my real credit score” – so let’s start.
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Why Do You Have Different Credit Scores?
You might wonder sometimes – Why Is My Credit Score Different on Different Websites if you’re seeing different scores from each bureau. There could be a few reasons for this.
Here are the 4 most common ones.
The Information in Your Credit Reports Varies Among Credit Bureaus
The first thing to understand is that there are 3 major credit reporting agencies and two companies that create credit scores are — mainly FICO and Vantage Score. Neither FICO nor Vantage Score has any information about how consumers handle their bills. Instead, they provide them with the formula which is used to evaluate the information in a consumer credit report.
And that information comes from one of the three major consumer credit rating bureaus:
- TransUnion
- Experian
- Equifax
While consumer credit reports are usually similar across all 3 platforms, these credit-reporting agencies don’t share information with one another and it is possible there are differences in their ratings. This is the reason, sometimes you may see 100 Point Difference Between TransUnion And Equifax Credit ratings.
This is more common than you may think. While some lenders report to all three credit bureaus, others may report to none at all. Of course, it’s a good idea to check your credit reports for errors periodically since an error could affect your score.
The Scores Are from Different Dates and Time
Your score may change at any time. Because the information in your credit reports may be updated at different times at each bureau. One credit bureau may be missing an account or other information that may help or hinders your score. If you pulled your credit report last week from anyone bureau – there is always a chance that it could be different this week based on new reports.
The Scores Were Calculated Using Different Scoring Models.
Like a fingerprint, each of the 3 credit agencies uses slightly different scoring systems. While we know the basics of how your credit score is calculated. Each model varies slightly depending on their history and the requirements of different lenders.
For example, a mortgage lender may use a different scoring model compared to an auto lender because they each place importance on different factors.
The Company That Developed the Score is Different
Different financial institutions may create their own proprietary scores that are not available to the public. They may use information from one of the three credit reporting agencies but also customize the score to their customer base. These are often referred to as “custom scores.” FICO (Fair Isaac Company) scores are the most commonly used credit scores.
Furthermore, each of the credit bureaus may create their own proprietary credit scores. Sometimes these are used by lenders. And other times they are “educational credit scores” offered to consumers, but not used by lenders to make credit decisions.
Each score is proposed to measure a certain type of risk of a borrower based on information in their credit report. But each one may approach the analysis in a somewhat different way. That means you can get your credit score from the same bureau the same day and the actual number may be different depending on whether it’s a Fico Credit Score or some other financial institution score.
Which Credit Score is My Real Score?
It’s logical to wonder which score is the best. The answer, though, is that the only score that really matters is the one the lender uses to evaluate the loan you want to take. Naturally, you won’t know which particular consumer reporting agency or scoring model the bank, credit union, or another type of lender will use to make a lending decision.
For example, in a few cases, such as a mortgage application, the lender will obtain multiple credit scores from different bureaus. So, your best approach is to understand the main scoring factors and work to make each of them as strong as possible.
What is a Good Credit Score?
Most consumer credit scoring models run from 300— 850. Though there are some less often used models that have a different score range. Each lender determines which range is acceptable and which score ranges help a borrower qualify for the best terms.
So again, there’s no single score that is considered as a Good Score. However, FICO Credit Score offers a credit score calculator that helps you understand the average interest rate by credit score range. So, if you are shopping for a consumer loan, it can be helpful.
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The Bottom Line
As you can see, the answer to the question “Why Do You Have Different Credit Scores?” can be complex. The bottom line is that you should make sure that, the underlying credit information is correct on each of your credit reports, no matter where you obtain them. Having the right data report is what is important. That’s why it is critical to monitor and understand the information being reported on your credit reports.
Also, make sure you’re taking advantage of monitoring your free credit scores and credit reports so you know what your reports say. Moreover, make sure you’re checking with all the major credit reporting bureaus. Since you can get your credit scores for free, such as Free Fico Score there’s no excuse!
Keep in mind that a credit freeze may inhibit your ability to check your reports or scores from certain sources.
Staying on top of your credit using the resources listed here can not only help you to find differences before they negatively impact your credit. But can also help you build credit and get the financing you need.
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