You check a credit score in one place, then see a different number somewhere else. Which one is right? Both may be valid. A score is a calculation based on a particular credit bureau’s file and a particular scoring model. Change the file or the model, and the number can change. Before comparing scores, it helps to know what went into each one.
Three bureaus hold three separate files
In the United States, Equifax, Experian and TransUnion each collect credit information. Their files are often similar, but they are not copies. An account may appear in one file and not another. The same account may also be recorded or displayed differently. According to myFICO’s explanation of bureau differences, those differences can produce different scores even when the same scoring system is used.
Think of each score as a reading from one file, not a reading from all three bureaus at once. If one file includes a payment record that another lacks, the calculations start with different inputs. A large gap between scores from different bureaus may point to a difference in their underlying files. The gap alone does not tell you which detail accounts for it, or whether either file contains an error.
The formula matters as much as the file
A scoring model is a formula that estimates credit risk from information in a credit file. FICO scoring systems can run on data from each of the three national bureaus. If those files contain the same relevant information, scores produced with the same model will generally be similar. That is why the bureau and the model both matter when you try to explain a difference.
What does the formula look at? A credit-score guide from MyCreditUnion.gov lists five broad factors in a published FICO breakdown: payment history at 35%, amounts owed at 30%, length of credit history at 15%, new credit at 10% and credit mix at 10%. Credit mix means the types of accounts in a file. These percentages describe that breakdown, not a rule that every scoring version must use identical weights for every person.
A different account balance could affect the amounts-owed portion. An account missing from one file could affect more than one factor, depending on its history. This is why comparing two scores without checking their source can be misleading: you may be comparing both different data and different calculations.
There is more than one scoring version
Even with the same bureau file, two models can produce different numbers. Scoring systems have been revised over time, and versions may treat some information differently. The myFICO guide to scoring versions describes general-purpose versions 8 and 9, along with versions designed for auto lending. It says updates have reflected changes in credit reporting and in how people use credit.
A number shown to a consumer may therefore come from a different version than one used in a lending decision. A free score display does not necessarily identify the score a lender will request. Nor does a score labeled for auto lending necessarily match a general-purpose score, even if both use the same bureau file. The version name is part of the number’s meaning.
That does not mean one version is the universally correct one. Each is a calculation made for a stated purpose. Without knowing the version, a 20-point difference gives you little basis for deciding what changed in your credit history.
What a score range can, and cannot, tell you
FICO scores generally run from 300 to 850. Common labels put scores below 580 in a poor range, 580 to 669 in fair, 670 to 739 in good, and 740 to 799 in very good, according to MyCreditUnion.gov. Labels can make a number easier to read, but they do not identify the bureau or model behind it. They also do not guarantee any lending outcome.
Suppose one display shows 695 and another shows 715. Both numbers fall in the same broad category, yet their difference still has an explanation worth identifying. Were they calculated from different bureau files? Did they use different model versions? Unless you know those details, the category label adds less information than it appears to.
Compare like with like before drawing conclusions
When you see two scores, start with three questions: Which bureau’s file supplied the data for each? Which scoring model and version produced each number? And were the scores calculated at comparable times? Answers to the first two can reveal that the numbers were never meant to match. Timing matters because a score reflects the information used when it was calculated.
If the bureau and version match but the numbers still differ, look at when each score was generated before assuming something is wrong. If the version matches but the bureaus differ, the bureau files are a more useful place to focus your questions. Check official sources for information about reviewing your own credit reports or addressing possible errors, and seek a qualified professional for questions specific to your situation.
Be wary of anyone promising a particular score. A score depends on the file, the model and the point in time used for the calculation. The most useful comparison is one that names those inputs, rather than treating every number called a credit score as interchangeable.
Please seek a professional. This article is general information, not financial, tax or insurance advice. Please seek a licensed financial, tax or insurance professional about your own situation.
