Experian is a credit reporting agency. Additionally, it provides consumer credit monitoring services, such as free access to some credit report data via Experian Boost and other products. Credit Karma is not a credit reporting agency but offers similar consumer credit monitoring services. Both services have freemium and paid versions.
Both services also give you an informational FICO® credit score based on data in your credit reports. Experian bases its informational credit score on Experian credit reporting data. Credit Karma uses data from Equifax and TransUnion, the other two major credit bureaus, to calculate its informative FICO credit scores.
You can view 28 of your FICO scores from all three credit bureaus when you register for ExtraCredit. Your free Credit Report Card, on the other hand, will show you your Experian VantageScore 3. 0.
Have you ever noticed a discrepancy between your Experian credit score and your FICO score? You’re not alone. Many people find themselves in this situation wondering why their Experian score is significantly lower than their FICO score.
This can be frustrating, especially if you’re trying to qualify for a loan or credit card with a specific credit score requirement. But before you start panicking, it’s important to understand the reasons behind this difference and what you can do about it.
Understanding the Difference Between Experian and FICO
First, it’s crucial to understand that Experian and FICO are two different entities. Experian, TransUnion, and Equifax are the three main credit bureaus. These bureaus gather credit history data and sell it to lenders and other companies.
FICO, on the other hand is a company that develops credit scoring models. These models use the information in your credit reports to generate a numerical score that represents your creditworthiness. Lenders use FICO scores to assess the risk of lending you money.
There are several different versions of the FICO score, and the specific score that a lender uses may vary depending on the type of loan you’re applying for. However, the most common FICO score used for consumer lending is the FICO Score 8.
Why Your Experian Score Might Be Lower Than Your FICO Score
There are a few reasons why your Experian score might be lower than your FICO score Here are some of the most common:
- Different Information: Experian and FICO may not have the same information about your credit history. This is because not all lenders report to all three credit bureaus. Additionally, the information that is reported may not always be accurate or complete.
- Different Scoring Models: Experian uses its own proprietary scoring model to generate credit scores. This model may differ from the FICO scoring model in how it weights different factors, such as payment history, credit utilization, and length of credit history.
- Negative Items: If you have negative items on your Experian credit report, such as late payments, collections, or charge-offs, these will have a greater impact on your Experian score than on your FICO score.
What You Can Do About It
There are several things you can do if you’re worried that your Experian score will be lower than your FICO score:
- Check Your Credit Reports: The first step is to check your credit reports from all three bureaus (Experian, TransUnion, and Equifax) to ensure that the information is accurate and complete. You can get a free copy of your credit reports once a year from AnnualCreditReport.com.
- Dispute Errors: If you find any errors on your credit reports, you can dispute them with the credit bureaus. The bureaus are required to investigate your disputes and correct any errors within 30 days.
- Improve Your Credit Habits: The best way to improve your credit score is to develop good credit habits. This includes paying your bills on time, keeping your credit utilization low, and avoiding opening new credit accounts too often.
- Consider a Credit Repair Service: If you have negative items on your credit report that you can’t remove on your own, you may want to consider using a credit repair service. These services can help you dispute negative items and negotiate with creditors to remove them from your credit report.
While it can be frustrating to have a lower Experian score than a FICO score, it’s important to remember that your Experian score is still a valuable tool for lenders. By understanding the reasons why your Experian score might be lower and taking steps to improve it, you can increase your chances of qualifying for the best loan rates and credit card offers.
Frequently Asked Questions
Q: What is the difference between Experian and FICO?
A: Experian is a credit bureau, while FICO is a credit scoring company. Experian collects information about your credit history and sells it to lenders and other businesses. FICO uses this information to generate credit scores, which lenders use to assess the risk of lending you money.
Q: Why might my Experian score be lower than my FICO score?
A: There are a few reasons why your Experian score might be lower than your FICO score. These include:
- Different information on your credit reports
- Different scoring models used by Experian and FICO
- Negative items on your Experian credit report
Q: What can I do to improve my Experian score?
A few actions you can take to raise your Experian score are as follows:
- Checking your credit reports for errors and disputing any that you find
- Paying your bills on time
- Keeping your credit utilization low
- Avoiding opening new credit accounts too often
Q: Should I use a credit repair service?
A: Credit repair services can help you dispute negative items on your credit report and negotiate with creditors to remove them. However, it’s important to choose a reputable service and be aware that there is no guarantee that they will be able to improve your credit score.
Additional Resources
- Experian Credit Report: https://www.experian.com/
- FICO Credit Score: https://www.myfico.com/
- AnnualCreditReport.com: https://www.annualcreditreport.com/
How can you check your credit score?
It’s critical to be aware of your credit score, particularly if you intend to apply for a credit card or loan. If you plan to launch a business or apply for a rental lease, you may also want to find out where you stand credit-wise.
You can get a free copy of your credit reports at AnnualCreditReport. com. That doesn’t give you your credit score, but it can help you see what’s on your report and decide whether to dispute any inaccurate information.
How can you get your Experian scores?
You can get your Experian score through the paid Experian Boost app. You can also get it for free through Credit. com’s Credit Report Card.