Why Do I Have So Many Different Credit Scores?

Your credit score is typically a three digit number based on a scale of 300 to 850. The number is a representation of how risky it is to lend you money or issue you a credit card. The credit score is based on account information, including your payment history, from lenders you do business with. That information is usually updated once per month with the credit bureaus.

There are three major credit reporting bureaus in the United States; TransUnion™, Equifax™, and Experian™. Credit scores which can accompany your credit report are made from a highly complex mathematical formula. These formulas are sometimes referred to as credit score models. There are many different models and each may be used for unique lending or investigation purposes. Auto lenders, banks and leasing agents all may use a different model with a different scoring process and range. Some score ranges may go as high as 1000 while others only go to 850.

The average person’s credit score varies as much as 40 points between the three credit reporting agencies. This is most often due to two factors:

1. Information – Account information used to calculate your credit score is different from one credit report to another. This is not uncommon. You may have an auto loan that reports to two out of three credit bureaus.
2. Score Model – The credit scoring models and score ranges may not be exactly the same.

A good rule of thumb is that if your credit score is considered good in one credit score model, then it’s likely good in others. This is likely the case when the information provided is the same on all reports.