Comparison of Credit Scores

FICO

Your credit score traditionally has been calculated by the Fair Isaac Corporation. It's also called your FICO score. The Fair Isaac Corporation explains that your credit score is reported differently because "there are three different FICO scores developed by FICO-one at each of the three main credit reporting agencies. And these scores have different names." These different credit reporting agencies are Equifax, Experian, and TransUnion, and they use different methods to compute your credit score.

Models

The credit reporting agencies use the information from your credit report to calculate your credit score. However, they may use different mathematical models to process the information. For example, Equifax uses a proprietary model called the Equifax Credit Score, and it uses information from all three credit bureaus instead of just one. The Equifax Credit Team also notes, "If your score differs among credit-reporting agencies, even if you pull the three scores on the same day, it may be because the score model used is different."

Reporting

Not all creditors report the same information to all three bureaus. Because your credit score is derived from the entries on your credit report, this can create differences among your credit scores. In its Credit Education Center, the Fair Isaac Corporation explains, "If your current scores from the credit reporting agencies are different, it's probably because the information those agencies have on you differs." Creditors also may report to the agencies at different times of the month, which affects your score depending on when you check it.

Errors

Differences in credit scores can result from errors in reporting. The Fair Credit Reporting Act was passed in 1970 to ensure all individuals and business have access to accurate information on their credit report. The act entitles individuals to obtain a free copy of their credit report once a year (through AnnualCreditReport.com) and a copy of their report if they are ever denied credit. If information on your credit report is incorrect, you are allowed to dispute the information without having the dispute affect your score.