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
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.
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? ›
The FICO® Score being made available to you through this service is the score provided by TransUnion. Scores provided by Experian and/or Equifax will likely vary due to differences in the customer's credit reports with those credit reporting agencies.
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 used most? ›
FICO ® Scores are the most widely used credit scores—90% of top lenders use FICO ® Scores. Every year, lenders access billions of FICO ® Scores to help them understand people's credit risk and make better–informed lending decisions.
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.
What is the true FICO score? ›
A true FICO score ranges between 300–850 and gets calculated using only information in a consumer's credit report maintained by the three main credit bureaus— Experian™, Equifax® and TransUnion®. To receive a FICO Score, you must have a credit account at least 6 months old and activity during the past 6 months.
Is TransUnion or FICO more accurate? ›
Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.
What is a good FICO score? ›
FICO Scores by Percent of Scorable Population
| FICO Score Ranges | Rating |
|---|
| 580-669 | Fair |
| 670-739 | Good |
| 740-799 | Very Good |
| 800+ | Exceptional |
1 more rowCredit 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.
What bureau does Capital One pull? ›
Capital One appears to pull from any of the three major credit bureaus: Experian, Equifax and TransUnion. Though all evidence is limited to anecdotal data, Capital One does seem to rely on specific bureaus in some states, though this is not a guarantee.
What day of the month do credit scores update? ›
Generally speaking, there is no set date each month when you can expect your credit scores to be updated. It all depends on when your lender sends information to the credit bureaus, when those bureaus update their reports and when credit scoring companies use those reports to update their scores.
Why is my FICO score different everywhere I look? ›
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.
Do lenders use FICO or Vantage? ›
Mortgage lenders typically use FICO® Scores☉ from each credit bureau to help determine your loan eligibility and terms. Many mortgage lenders sell the mortgages they issue to the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac.
Why is my FICO score different then my credit score? ›
The reason for the differences in FICO scores comes down to the differences in credit reports from each of the three major credit bureaus. For example, lenders might not report credit activity to all bureaus.
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.
Why is my Experian score 100 points lower than TransUnion? ›
Like Experian and Equifax, TransUnion uses a dynamic scoring model. Your payment history makes up roughly 40% of your TransUnion credit score, and your credit utilization makes up 20%. These numbers vary slightly from Experian, which is why you should expect to see different scores between the various bureaus.
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 FICO score do lenders use? ›
While most lenders use the FICO Score 8, mortgage lenders use the following scores: Experian: FICO Score 2, or Fair Isaac Risk Model v2. Equifax: FICO Score 5, or Equifax Beacon 5. TransUnion: FICO Score 4, or TransUnion FICO Risk Score 04.
