Why Are Credit Scores Different at Each Bureau?

If you've ever received your credit score from multiple bureaus at the same time, there's a good chance that all three were slightly different. But why are credit scores different at each bureau? 

Each entity gathers financial data from lenders and collections agencies independently. Additionally, they may use different credit scoring models and factors to calculate your score, leading to variations. However, your credit history across all three bureaus should be fairly similar. 

Discover why credit scores differ between bureaus and what you can do to manage your score. 

Why your credit score differs at each bureau

All three credit bureaus (Equifax, Experian, and TransUnion) provide credit scores and reports that contain information about your financial history. While the data these agencies collect is largely the same, there are several reasons your scores might differ. 

Not all lenders report to all three bureaus

While most financial institutions report data to all three bureaus, some only report to one or two. This means one bureau may have information that the others don't have. If a lender doesn't report to TransUnion, for example, your TransUnion score could differ from your Experian score. 

Timing of reporting

Lenders don't all report data to credit bureaus at the same time. Some report every 30 days, while others do so more or less frequently. This means that the balance on an account or a recent payment may show up on one report before it appears on another. A payment you just made might already appear on your Experian report, but it might not have been processed at TransUnion yet. 

Different scoring models

The various credit agencies use different algorithms to calculate your score. For instance, FICO has multiple scoring models (FICO 8, FICO 9, FICO 10), and VantageScore does as well. Each model assigns different weights to each factor, meaning the same financial behavior could result in different scores depending on the scoring model used. 

How to manage your credit across all three bureaus

Now that you know why credit scores differ between bureaus, here are some tips to help you manage your credit profile and reduce discrepancies: 

• Review all three reports annually to check for errors, as mistakes can cause your score to vary
• Dispute inaccuracies on any report that has them
• Make on-time payments on all accounts
• Keep credit utilization low across all accounts

Kikoff has a free tool to generate dispute letters and send them to the credit bureaus. 

What to do if your score is lower than you'd like

If you notice that one or more of your scores are lower than you would like, Kikoff can help.

Start building a positive credit history with Kikoff today.