Why Do My Credit Scores Differ? A Simple Explanation

Credit scores often differ across sources, leading to confusion about their calculation and why they are not always the same. Understanding that credit scores are not universal and that variations are normal helps demystify these discrepancies. This article clarifies the fundamental reasons behind these differences.

Understanding Different Credit Scoring Models

Credit scores vary because no single, universal score exists. Numerous credit scoring models use distinct algorithms and weigh credit factors differently to assess creditworthiness.

The two dominant families are FICO Scores and VantageScore. Both predict the likelihood of a consumer becoming seriously delinquent on a debt, often within 24 months. These models process raw credit report data using proprietary calculations, resulting in different scores even from the same underlying information.

FICO, developed by Fair Isaac Corporation, has been a long-standing standard since 1989. Over 90% of lenders reportedly use FICO Scores.

Many FICO Score versions exist, including FICO 8, FICO 9, and newer models like FICO 10 and 10T, each with slight algorithmic adjustments. FICO 8 is widely used by credit card issuers, while older versions (FICO 5, 4, 2) are prevalent for mortgage lending.

Industry-specific FICO Scores, such as FICO Auto Scores or FICO Bankcard Scores, are optimized for particular loan types. An auto lender might use a different FICO score version than a mortgage lender.

VantageScore was developed collaboratively by the three major credit bureaus—Equifax, Experian, and TransUnion—in 2006 as a competitor to FICO.

Its models, including VantageScore 3.0 and 4.0, range from 300 to 850, similar to FICO scores. Both prioritize payment history, but assign different weightings to credit utilization, length of credit history, and new credit.

VantageScore 4.0 incorporates “trended data,” analyzing credit usage over time rather than a single snapshot, for a more dynamic view of financial habits.

Differences in how models treat specific credit events also contribute to score variations. FICO 9 is more forgiving of paid collection accounts and places less emphasis on unpaid medical collections than older FICO versions. VantageScore 3.0 and 4.0 generally exclude paid and unpaid medical collections. When checking your score through various channels, you often see scores generated by different models or versions, explaining fluctuations.

Variations in Data Reported to Credit Bureaus

Even with the same scoring model, scores differ because the underlying data varies across Equifax, Experian, and TransUnion. Creditors are not legally required to report account information to all three bureaus. Many report to only one or two, or none, often due to associated fees.

This selective reporting means each credit bureau may have a unique “raw data file.” For example, a credit card company might report payment history to Experian and TransUnion but not Equifax. A positive history reported to some bureaus but not others can lead to higher scores from those bureaus. Conversely, a negative item reported to only one bureau means scores from the others might appear more favorable.

Hard inquiries, which occur when applying for new credit, also contribute to data variations. Lenders may pull a report from one, two, or all three bureaus, so an inquiry might not appear on all reports. A single hard inquiry typically has a minimal, temporary impact, often reducing a FICO Score by fewer than five points. Multiple inquiries within a short period can be viewed as riskier. Inquiries remain on your report for up to two years, though their impact usually diminishes after one year.

Beyond account data, minor variations in personal identifying information, like past addresses or employers, might exist across bureau files. While these details do not directly impact your score, they highlight that your credit profile’s completeness and consistency can differ. The information available to a scoring model at any bureau directly influences the resulting score, leading to discrepancies.

Impact of Timing and Reporting Cycles

Credit scores are dynamic snapshots of your credit profile at a specific moment. This dynamism is why scores differ, as creditors do not report account activity to credit bureaus instantaneously. Instead, they typically report updates monthly, often aligning with your statement closing date or payment due date.

There is a lag between taking a credit action, like paying off a balance or opening an account, and that information appearing on your report. It can take 30 to 45 days for a creditor to report updated data and for the bureau to process it. For example, a lower credit card balance may not reflect immediately, as lenders typically report monthly.

Different creditors have their own reporting schedules, often spread throughout the month. This means your credit reports at each bureau can be updated at different times. Checking your score from Experian on a Monday might reflect data updated Friday, yielding a different result than checking TransUnion on Wednesday after a fresh update.

The frequency with which credit monitoring services or score providers update their data also varies. Some services update daily or weekly, while others provide monthly updates. This difference in retrieval frequency, combined with varying reporting cycles, contributes to perceived fluctuations. Your credit score reflects the most recent data available, and since that data is constantly in flux, your score can change frequently.