Why Is It That Different Credit Websites Give Me Different Credit Scores?

Identification

While the national credit bureaus try their best to have the most accurate information possible, they still miss some things that their competitors pick up. Also, some lenders only report to certain credit bureaus. Most people have a 50-point variation between their scores at the three major bureaus, according to Bargaineering. When a credit bureau has a significant omission, such as a collection account or mortgage account, this difference could grow far larger.

Considerations

Although most lenders only accept FICO scores or a score based on the FICO model, several other scoring algorithms exist, such as the VantageScore. Scores other than a true FICO calculation are sometimes called a "FAKO" score, because they are mostly meant to educate consumers about credit and not to prepare for a loan application. Also, even among the major bureaus are slightly different reporting standards. Experian, for instance, reports unpaid tax liens for 15 years, while Equifax and TransUnion report them indefinitely.

Does This Matter?

Having several different credit scores may not mean a whole lot for your chances on a credit application. Some lenders do not use the scores provided by the major credit reporting agencies, instead opting for a proprietary formula. Other lenders may use your score from all three major bureaus and take the average or the highest one.

Tip

Lenders probably won't rely only on your FICO score to determine whether you are a good credit risk. Thus, you should work to improve your credit history rather than focus on any particular score a website provides. If you have a high level of debt relative to your income, work on paying down some of that balance or get a promotion. Pull your report from all three major bureaus and compare them for possible errors. A mistake on an account balance, for example, could cost dozens of points.