3 Credit Bureaus Scores [BETTER]
If the scores vary based on the same scoring model, then Credit Report information could be different at each of the 3 bureaus. For example, one bureau may have 6 hard inquiries on its credit report, another may have 2, and the last bureau may have 4. Since the number of hard inquiries is a factor in calculating your Credit Score, this could produce different score numbers, even though it is based on the same scoring model.
3 credit bureaus scores
Information reported to each of the 3 bureaus can be different and the individual creditors furnishing data may also be different, meaning one creditor may only report to one or only two of the three bureaus. Lenders, such as mortgage companies are not required by law to report account information to each of the 3 bureaus. Checking each of your 3 Credit Reports gives you a comprehensive view so that you can easily identify differences that could impact your credit standing.
Making sure your credit report is accurate ensures your credit score can be too. You can have multiple credit scores. The credit reporting agencies that maintain your credit reports do not calculate these scores. Instead, different companies or lenders who have their own credit scoring systems create them.
In addition to using your credit report to help protect your credit, you can use it to develop strategies for affecting your credit too. With the What If Credit Score Simulator and Financial Calculator Suite from PrivacyGuard, you can see how different tactics might impact your credit scores, and figure out the best way to budget your finances.
Your VantageScore credit score(s) are provided by VantageScore Solutions LLC. The VantageScore model, with scores ranging from 300 to 850, was developed jointly by the three major national credit reporting agencies - Experian, TransUnion, and Equifax. The version of VantageScore provided here is used by some, but not all, lenders. Your score(s) may not be identical or similar to scores received directly from those agencies, from other sources, or from your lender.
1Your VantageScore credit score(s) are provided by VantageScore Solutions LLC. The VantageScore model, with scores ranging from 300 to 850, was developed jointly by the three major national credit reporting agencies - Experian, TransUnion, and Equifax. The version of VantageScore provided here is used by some, but not all, lenders. Your score(s) may not be identical or similar to scores received directly from those agencies, from other sources, or from your lender.
Trilegiant Corporation, Trilegiant Insurance Services, Inc., and Alliance Marketing Association and their credit information subcontractors shall not have any liability for the accuracy of the information contained in the credit reports, credit scores, Credit Alert reports or other reports which you receive in connection with the PrivacyGuard service, including any liability for damages, direct or indirect, consequential or incidental.
When you apply for credit, the lender typically reviews your credit history from one of the credit bureaus. This process might sound mysterious if you're unsure what the credit bureaus are and what purpose they serve, but the concept is quite simple.
Information in your credit report is shared with financial institutions and other parties, such as real estate and auto companies, when you apply for credit cards, mortgages and auto loans. Credit bureaus do not make lending decisions; they only collect and provide information to lenders. Lenders use this information to determine your eligibility for credit.
Before you apply for credit, we recommend checking your credit score from all three bureaus to see where you stand holistically. And if possible, ask the lender which credit bureau they deal with so you can be sure to check to see which score you're being evaluated on.
If you notice an error on your Experian credit report, check if it's also present on your TransUnion and Equifax reports. Then dispute the error directly with the credit bureau(s). Legally, the credit bureau has to report the issue to the other two bureaus. Regardless, you should dispute it directly with each credit bureau to cover all the bases.
Each credit bureau issues its own report, so there could be three different credit reports with your name. You can request just one of the three, or all of them by reaching out to the bureaus directly. You can also request your credit report through your bank. For example, you can access your free Experian credit report when you enroll in Chase Credit Journey.
As noted above, in the U.S., there are three major credit bureaus: Equifax, TransUnion and Experian. Each of these credit bureaus collects your information from multiple sources. They may receive this information voluntarily from credit card issuers, banks, auto lenders, mortgage lenders or debt collection agencies. They also may gather information that is available to the public, including court records and bankruptcy filings.
Note that other reporting agencies (or minor credit bureaus) also exist. These companies may offer services that collect specific, nuanced information, such as on borrowers who have little credit history or activity. Minor credit bureaus including CoreLogic Credco, MicroBilt/PRBC and Innovis may have expertise in reporting particular types of data which can be useful to lenders.
The three major credit bureaus work in similar yet slightly different ways from one another. Below, we'll dive deeper into the specifics of each bureau, demonstrating what they do and how they differ.
Credit bureaus gather similar types of data and use that information to help generate a credit score, which is a three-digit number that reflects your creditworthiness. To calculate this, they use either the VantageScore model or the FICO model. Both of the scoring models are used widely and are important, but the way each model calculates the score differs.
This model founded in 2006 uses similar data to the FICO model. It can calculate a score as long as there is at least one account, regardless of how old that account is. Using information from one of the credit bureaus, the VantageScore model calculates your score by considering the following factors:
While all three credit bureaus generally collect similar types of information and provide similar services (such as identity monitoring, financial tools and credit scores), they differ slightly. The main differences come down to the credit score calculations used and how they process information.
This is the largest credit bureau, maintaining credit information for over 220 million consumers in the U.S. Unlike the other credit bureaus, Experian collects rental payment data from landlords who report this information. Their credit breakdown is:
TransUnion gathers information on over 1 billion consumers in over 30 countries across the globe. This company weighs your payment history and credit age more so than the other two credit bureaus. Their breakdown of credit factors is:
One credit bureau is not necessarily used more over another. Credit bureaus are used for different services, including credit reports, credit scores and tools like identity monitoring. Experian, Equifax and TransUnion are all respected, credible bureaus that are used widely.
The three major credit bureaus all collect similar types of information but compile and calculate that information in different ways. Understanding how each bureau tabulates your credit score is critical to improving your overall financial knowledge. If you know what the different credit score ranges are for each bureau, you can get a well-rounded idea of how healthy your credit is. Using the reports from all three credit bureaus can provide you with the insight and understanding necessary to make important financial choices.
Credit scores are required for most loans purchased or securitized by Fannie Mae. The classic FICO credit score is produced from software developed by Fair Isaac Corporation and is available from the three major credit repositories. Fannie Mae requires the following versions of the classic FICO score for both DU and manually underwritten mortgage loans:
Credit scores are not an integral part of DU's risk assessment because DU performs its own analysis of the credit report data. However, lenders must request credit scores for each borrower from each of the three credit repositories when they order the three in-file merged credit report, described in B3-5.2-01, Requirements for Credit Reports. If one or two of the credit repositories do not contain any credit information for the borrowers who have traditional credit, the credit report is still acceptable as long as
Loan Delivery collects credit score data for each borrower and also at the loan level. Lenders are required to deliver the representative credit score for all loans. This applies even if the average median credit score is used for loan eligibility and may result in delivery of loans with representative scores less than 620. For additional information, see the Loan Delivery Job Aid: Credit Scores.
Most big lenders report to all three credit bureaus, says John Ulzheimer, a credit expert who has worked at Equifax and FICO. But smaller lenders might alert just one of these agencies. "There's no requirement to report to all three credit bureaus," Ulzheimer says. "As a lender, you can choose to report to one or two, or none, or all three."
First, debt collectors sometimes report information about you to the credit bureaus, such as third-party collection accounts. Credit reporting agencies may also turn to public records, such as bankruptcy filings, to collect data.
FICO created and owns the oldest and most widely used scoring model. FICO allows the credit bureaus to use its algorithm to generate credit scores, says Ulzheimer. In 2006, Equifax, Experian and TransUnion joined forces to create their own credit scoring model, VantageScore, as an alternative to FICO.
The information also may not be reported to each agency at the same time, resulting in slightly different scores. "Your credit reports are constantly going through changes through the update process by your lenders," Ulzheimer says. "So, your credit report next week is likely to look different than your credit report today." 041b061a72