The 3 Major Credit Bureaus and Why Their Scores Differ |
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TransUnion, Equifax and Experian are the three major
credit bureaus, and they all have different credit
scores for each individual with a credit history. The difference in
scoring can be confusing because you may not know which one is going to
be considered the most by those who are reviewing your credit reports.
The three credit bureaus have developed VantageScore in order to make
your credit scores easier to understand, but it’s important to know how
and why they score your credit they way they do.
Based on Special Scoring Models
Each of the major credit bureaus developed its own scoring
model on which it bases all credit scores. As a result, you can get up
to a 100-point difference. Here are the ranges to know about:
- Transunion scores range from 300 to 850 points.
- Equifax scores range from 350 to 850 points.
- Experian scores range from 330 to 830 points.
The two commonly used scoring models are called FICO or PLUS.
Data Collection Varies
Creditors may report your information to one or two of the
credit bureaus but not to all three. Also, in the process of collecting
information, what one of the major credit bureaus ends up with may be
far different from the information gathered by the other two. Your
financial record has a direct impact on your credit score, and
different records will produce different scores. It’s for this reason
that lenders and others often average your scores; they are trying to
determine a more accurate number.
Check your credit reports for errors and send the major credit
report bureaus dispute letters if necessary to make corrections. It may
help to bring all three scores closer together.
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