The 3 Major Credit Bureaus and Why Their Scores Differ

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.