The most commonly used credit scoring models have a score range of on the low end to on the high end, although there are some exceptions.
The higher your scores, the less risk you pose to existing or future lenders, and thus the more attractive your lending options will be.
The most commonly used credit scores in the U. Their scores are commonly used by lenders offering credit cards, auto loans, mortgages, personal loans and other forms of credit.
Lenders may also use their own proprietary credit scoring models after receiving the credit report, or third-party service providers may get your credit report, calculate scores and send both to the lender.
The better you manage credit in each of these categories, the higher your scores. And the higher your scores, the better deals you'll likely receive from lenders and other service providers. In fact, there are several reasons why your scores from Experian, TransUnion and Equifax are typically different.
While it is possible for you to have only one credit score , it's unusual. Consumers normally do not have a single score but rather many credit scores. This is due to a variety of factors, such as the many different credit score brands, score variations and score generations in commercial use at any given time.
These factors are likely to yield different credit scores, even if your credit reports are identical across the three credit bureaus—which is also unusual. This would probably hold true even if you checked those two scores with the same credit bureau and on the same date.
Different credit scoring systems, even though they're generally designed to do the same things, aren't necessarily going to consider information the same way, have the same score range or yield identical numeric scores. The three credit bureaus are different companies, and each one maintains its own credit report information.
As such, it is likely that your three credit reports will be at least slightly different at any point in time. One of the reasons your credit reports may vary has to do with the companies that report, or "furnish," information to the credit bureaus. Many lenders furnish information to all three major credit bureaus, but some may furnish information to just one or two of them.
This difference in data results in distinct credit reports with each bureau and can lead to differing credit scores across the bureaus. Another example of how your three credit reports may contrast is by the number of hard inquiries that appear on them at any time. Hard inquiries, those generally made when you've applied for some form of credit, are seen by credit scoring models and can have an impact on your credit scores, albeit minor.
If you've applied for a credit card with a bank or credit union, it's very likely they will pull one of your credit reports as part of their underwriting process.
However, they may not pull all three of your credit reports. That means one of your three credit reports will contain a record of a hard inquiry that does not appear on your other two reports. That can lead to a difference in your credit scores across credit bureaus. Another reason you may see discrepancies in your credit scores has to do with when they are produced. Your credit scores are calculated at a specific point in time, often referred to in credit scoring vernacular as a "snapshot"—they are not a component of your credit report that change over time as your credit report data changes.
Instead, they are a separate tool used to evaluate the information in your report and indicate the risk of lending to you. When your score is requested by a lender or other party or by you , it is calculated at that time and reflects your credit history at that instant.
Credit report data furnished by lenders with whom you have active accounts is generally updated on a monthly basis. While accounts are updated monthly, each lender may report updates at different times throughout the month. As a result, your credit reports can go through a series of changes every 30 days. 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.
Lenders report credit information to the credit bureaus at different times, often resulting in one agency having more up-to-date information than another. Skip Navigation. Our Products. One-time Credit Reports Be prepared for important transactions. Credit bureau: Credit scores are calculated using data listed on your credit report, which comes from one of the three major credit bureaus — Experian, Equifax or TransUnion. Your score differs based on the information provided to each bureau, explained more next.
Information provided to the credit bureaus: The credit bureaus may not receive all of the same information about your credit accounts. While most do, there's no guarantee that the information will be the same across the board, creating potential differences in your scores.
Date scores are accessed: If you view your credit score at different times, there may be discrepancies since one score may be outdated. Errors on your credit report: Your credit score can reflect any errors that appear on your credit report.
If errors only appear on one bureau's report, then your credit score from that report may differ from another that has no errors. You should dispute errors on your credit report right away to avoid harm to your credit score.
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