It’s common to see variations in your credit score across the three major credit bureaus: Experian, TransUnion, and Equifax. If you find that your score is lower with one bureau compared to another, it’s important to understand why these discrepancies occur. Here’s a breakdown of the key factors that contribute to these differences.
Different Scoring Models
Each credit bureau may use different scoring models to calculate your credit score. For instance, Experian might use the FICO Score 8 model, while TransUnion might use VantageScore 3.0. These models weigh factors such as payment history, credit utilisation, and length of credit history differently. As a result, the same financial data can lead to different scores depending on the model used.
Variations in Reporting Times
Credit bureaus do not always receive and update information simultaneously. Lenders and creditors might report data to one bureau before another. For example, if a lender updates your credit card balance with TransUnion but not yet with Experian, the scores will reflect different balances, leading to score discrepancies.
Differences in information
Not all lenders report to every credit bureau. Some may only report to Experian, while others report to TransUnion or Equifax. This means that one bureau might have more comprehensive or recent information than another. For instance, if you have a new account or recent payment that’s only reported to TransUnion, but not yet to Experian, your scores can differ.
Error or Outdated Information
Errors or outdated information on your credit report can also cause score differences. If one bureau has incorrect information or outdated data, it can negatively impact your score. Regularly reviewing your credit reports from all three bureaus helps ensure that your information is accurate and up-to-date.
1. Regularly check your credit reports: Obtain and review your credit reports from all three bureaus. This will help you understand the differences and spot any inaccuracies or missing information.
2. Dispute errors: If you find errors or outdated information, dispute them with the relevant bureau to have them corrected. Accurate data across all three bureaus can help ensure consistent credit scores.
3. Monitor your credit: Consider using credit monitoring services to keep track of changes across all bureaus. This can help you stay informed about your credit status and address any issues promptly.
4. Understand the scoring models: Be aware that different bureaus use different scoring models. Knowing this can help you understand why scores vary and manage your credit accordingly.
Variations in your credit score between Experian, TransUnion, and Equifax are normal and can be attributed to differences in scoring models, reporting times, information reporting, and potential errors. By regularly checking your credit reports and addressing any discrepancies, you can maintain a clearer understanding of your credit status and work towards a healthier credit profile.
