Why Credit Scores Differ With All Three Agencies

Surely you have repeatedly heard that you should check your credit score regularly to make sure everything is right. If you have previously received copies of your credit report from the three agencies, you have probably noticed the scores are different.

What is the reason for the differences? Here are some of the reasons why the scores can be so different between the three reports. First of all, check each report thoroughly to make sure all of the information is correct.

There may be something on one that isn’t correct, so that can affect your credit score with that particular monitoring agency. If one agency has incorrect information concerning your credit habits, then that credit report would differ from the others. You should fix any incorrect items to make sure you have the right score.

Each agency computes things differently, and therefore they have slightly different scores a the end. Experian uses the FICO score, but they still add extra factors in their computation.

Equifax used the FICO system, and TransUnion uses yet another system of their own. Another possibility is that your credit cards aren’t reporting to all three of the credit monitoring agencies.

If only one agency receives the information, then it is obvious that their report is going to be different than the other two. Make sure the information matches on all three reports. It’s also possible that some of the information that’s reported to the credit bureaus isn’t given to all three at the same time. When you check, one agency might have received information the other two haven’t received yet. The credit scores would then differ greatly until the other two agencies receive the same information.

In order to protect your credit score and enable you to qualify for low interest loans, make sure each report has the same information, so that your score can be streamlined and you won’t get any shocking declines when it comes time to process your loan application.

It’s important to note that all three reports are not likely to have the same score as each other – even if all three have the same information. They all use a different scoring system, so the scores are likely to be a little different.

All that should matter to you is that you keep up with your payments, and that your reports don’t have any errors. If your credit is positive, then it will be no problem for lenders to be willing to work with you.

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