Why Is My Equifax and TransUnion Score So Different?

Consumers often find their credit scores differ between major credit bureaus like Equifax and TransUnion. While these variations are normal, understanding their causes can clarify the credit reporting system. This article explains the reasons for score discrepancies and how to address them.

Core Reasons for Score Variation

Credit scores vary across bureaus due to inconsistent reporting by creditors. Lenders are not legally required to report account information to all three major credit bureaus: Equifax, TransUnion, and Experian. Some report to only one or two, or none, due to cost or internal policies. This means each bureau may have a unique dataset for an individual, leading to different score calculations. For example, a smaller loan or utility account might only be reported to one bureau, creating an incomplete picture elsewhere.

The timing of data updates also contributes to score differences. Creditors do not necessarily report to multiple bureaus simultaneously. Information might be sent on different days, or some creditors report monthly while others report quarterly. This staggered reporting means one bureau’s file might be more current, reflecting recent payments or new account openings not yet appearing elsewhere. A payment made just days before a score is pulled could be reflected on one report but not another, causing a temporary discrepancy.

Different scoring models used by credit bureaus are another factor. While FICO Score and VantageScore are widely recognized, bureaus may use various versions or proprietary models. These models weigh different aspects of a credit report with varying importance. For example, payment history is influential for both FICO and VantageScore models, but its contribution to the score can differ. Credit utilization, the amount of credit used compared to available credit, also varies in its impact, leading to different numerical outcomes even with identical underlying data.

Models can also treat specific credit events differently. For instance, some models may ignore paid collection accounts, while others might disregard collections below a certain threshold. The length of credit history considered can also vary. These variations in calculation methodologies mean scores would likely still show differences even with perfect data synchronization.

Errors or fraudulent activity can also cause significant divergences in credit scores. An inaccuracy, such as an incorrect account balance, a duplicated account, or an account not belonging to the consumer, might appear on one report but not others. Identity theft, involving fraudulent accounts or unauthorized transactions, can also lead to negative entries on one report that are absent from another. Such errors can lower a score on one bureau’s report, creating a noticeable gap.

Accessing and Comparing Your Credit Reports

Understanding credit score variations requires reviewing the underlying credit reports. The Fair Credit Reporting Act (FCRA) grants consumers the right to obtain a free copy of their credit report from each of the three nationwide credit bureaus—Equifax, Experian, and TransUnion—once every 12 months. These reports are accessible through AnnualCreditReport.com, or by phone or mail. Use this authorized source to avoid sites offering “free” reports that require additional purchases.

When comparing reports from Equifax and TransUnion, examine several key data points. Verify personal information, including names, addresses, and Social Security numbers, for accuracy across all reports. Scrutinize account information, such as open and closed accounts, credit limits, current balances, and account opening dates. Discrepancies in these details directly influence score calculations.

Pay attention to payment history, noting any late or on-time payments, as this is a heavily weighted factor. Review public records, such as bankruptcies and judgments. Also, check for inquiries, distinguishing between “hard” inquiries (from credit applications, which can slightly lower scores) and “soft” inquiries (from personal checks or promotional offers, which do not affect scores). The presence or absence of these elements on one report versus another can explain score differences.

The FCRA protects consumers by ensuring credit reports are accurate, fair, and private. It provides a framework for consumers to access their information and dispute inaccuracies. Identifying inconsistencies across reports is the first step in improving the accuracy of one’s credit data.

Resolving Discrepancies

Once discrepancies or errors are identified, consumers can initiate a resolution. The primary method involves directly disputing inaccurate information with the credit bureau that reported it. Disputes can be filed online, by mail, or over the phone, and it is advisable to dispute with each bureau displaying the error.

When submitting a dispute, provide identification like your name, address, and account number. Detail each error, explaining why it is incorrect, and include copies of supporting documentation, such as payment receipts or statements, while retaining originals. The credit bureau must investigate the disputed item, usually within 30 days, unless deemed frivolous. If the investigation results in a change, the bureau will notify you.

Consumers can also dispute errors directly with the creditor or lender that furnished the information. This dual approach ensures the error is investigated from both ends of the reporting chain. The furnisher must investigate the dispute and correct inaccurate or incomplete information. If the furnisher confirms an error, they must notify the credit bureaus to update or delete the incorrect data.

Regularly checking credit reports, perhaps annually, helps catch new errors or monitor changes after a dispute. Resolving inaccuracies can positively impact credit scores, potentially bringing them closer across bureaus. This monitoring ensures creditworthiness information is accurate and complete.