The credit score you see and the one your lender uses may be different for several reasons.
First and foremost, it’s critical to comprehend that the data in credit reports kept by the three main credit bureaus is what determines credit scores. A credit score based on one report may not be the same as a score based on another if those reports are different.
There are multiple credit scoring models, and there’s no guarantee that the one you use to check your own credit is the same one your lender uses, which could be another reason the scores vary. Additionally, each model updates the scores it generates on a regular basis, and some score versions are industry-specific. For instance, the VantageScore® 3 may be used to determine your score when you check your credit score for free. 0 model, but your mortgage lender might use the FICO® Score☉ 2 to assess your credit.
Below, I’ll go over the variations in credit scoring models and additional factors that could affect your score. It is crucial to keep in mind, though, that consistent good credit behavior—such as timely bill payment, credit card debt reduction, and long credit history maintenance—usually results in a good or excellent credit score across all credit models, versions, and credit bureaus.
Here’s what you should know about your different credit scores and which ones you should pay particular attention to when applying for new credit.
Hey there, fellow credit enthusiasts! Ever wondered why your Experian credit score might differ from the FICO® score you see on your credit card statement? Buckle up, because we’re diving deep into the world of credit scores and exploring the differences between Experian and FICO®.
The Lowdown on Experian and FICO®
Experian is a credit reporting agency that provides consumers with access to their credit reports and scores. FICO® on the other hand is a credit scoring model used by lenders to assess your creditworthiness. While Experian provides you with an informational FICO® score based on your Experian credit report, it’s important to remember that lenders may use a different FICO® score based on data from other credit bureaus or different scoring models.
Why Your Scores Might Differ
Your Experian credit score may differ from the FICO® score you see elsewhere for a number of reasons.
- Different Credit Bureaus: Lenders may use a FICO® score based on data from a different credit bureau, such as TransUnion or Equifax.
- Different Scoring Models: There are many versions of the FICO® score, and lenders may use a different model depending on the type of loan you’re applying for.
- Incomplete Information: Your Experian credit report may not contain all the information that’s included in your other credit reports, which could affect your score.
Is Experian More Accurate Than FICO®?
Both Experian and FICO® are reliable sources of credit information. In each unique instance, the credit score with the most complete information is the most accurate.
How to Get Your FICO® Scores
You can get your FICO® scores from various sources, including:
- Credit card companies: Many credit card companies offer a free monthly FICO® score to their cardholders.
- Credit monitoring services: Services like Experian and Credit Karma offer paid plans that include access to your FICO® scores.
- MyFICO: You can purchase your FICO® scores directly from MyFICO.
Understanding Credit Score Models
Your credit report’s contents are used by all credit scoring models to determine your final score. However, they take different information into account or weigh various data differently. Hard inquiries are handled differently by the VantageScore and FICO® models, for instance, and this could affect your score.
Credit Score Impactors
Five major factors influence your credit score:
- Payment history: Demonstrates whether you’ve made payments on time and as agreed.
- Credit utilization: Reflects how much of your available credit you’re using.
- Credit mix: Shows whether you have a good mix of revolving and installment accounts.
- Credit age: Reflects how long you’ve had a credit history and the average age of your open accounts.
- Hard inquiries: Occur when someone checks your report for credit applications.
How to Check Your Credit Score
You can get a free copy of your credit reports at AnnualCreditReport.com. While this doesn’t provide your credit score, it allows you to review your credit history and dispute any incorrect information.
Get Your Experian Scores
You can get your Experian score through the paid Experian Boost app or for free through Credit.com’s Credit Report Card.
Get Your FICO® Scores
Many credit card companies and lenders offer a free monthly FICO® score. You can also purchase your FICO® scores directly from MyFICO.
Consider ExtraCredit+
For real-time access to more than one of your FICO® scores, consider signing up for ExtraCredit+. This service provides access to all three of your credit bureau credit reports and 28 of your FICO® scores.
Remember: Your credit score is a snapshot of your financial health. By understanding the factors that influence your score and taking steps to improve it, you can unlock better interest rates, loan terms, and more.
Why Do I Have So Many Different Credit Scores?
Your credit scores are derived from information gathered by three credit bureaus: Equifax, TransUnion, and Experian. These entities also offer a variety of score models and versions.
Because FICO® creates scores uniquely for each bureau, your FICO® Score 8 could vary slightly based on the bureau. However, VantageScore was created collaboratively by the three credit bureaus, so regardless of the agency you use, scores that utilize the same VantageScore iteration will be identical.
There are some differences in the way VantageScore and FICO® calculate your score. For instance, if you don’t have a credit account that is more than six months old, you probably won’t have a FICO® Score. However, if you have at least one account in your name, regardless of its age, you are eligible to receive a VantageScore.
Furthermore, even though credit utilization—that is, how much credit card debt you have in relation to your credit limit—is heavily weighted in both scoring models, the VantageScore 4 0 also takes into account your utilization over time. In other words, if you pay your credit card bill in full each month, even if you carry a balance a few times a month, you will receive credit for typically increasing your utilization to 200%. Conversely, the most widely used versions of the FICO® Score will evaluate your credit utilization solely on the basis of the date that your score was obtained. Although lenders have not yet embraced the FICO® Score 10 T model extensively, it does take utilization over time into account.
Depending on the type of score, the scoring range may also differ. General FICO® Scores range from 300 to 850, and so do VantageScore 3. 0 and 4. 0 scores. But industry-focused FICO® Scores range from 250 to 900, and VantageScores 1. 0 and 2. 0 range from 501 to 990. In actuality, the differences aren’t that great: the higher your credit score, the better, even though the exact number of the ranges may vary.
How to Improve Your Score Before Applying for Credit
Paying all of your bills on time and maintaining timely credit for each account is a tried-and-true method of building excellent credit. Although it won’t raise your credit score quickly, if you follow through on this consistently, your scores will rise regardless of the model or version you use. Paying off debt balances, if possible, will also lower your credit utilization, similarly improving your score.
Avoid making any more hard inquiries in the weeks before your application if you’re applying for credit quickly, as this could temporarily lower your score. Additionally, try not to close outdated credit accounts if maintaining them won’t be costly or difficult so that the account’s credit limit and lengthy credit history will help your scores. The fact that you have been able to handle an account responsibly for a long time will be appreciated by lenders.
FICO Score vs Credit Score vs Credit Karma (Why Are My Credit Scores So Different?)
FAQ
Does Experian show your real FICO score?
Why is my FICO score different on Experian?
Is Experian or FICO more reliable?
Which FICO score is most accurate?
Why do Experian credit scores differ from FICO scores?
The credit scores you see when you check a service like Experian may differ from the FICO scores a lender sees when checking your credit. That’s because the lender may be using a FICO score based on data from a different credit bureau. It may also be looking at a different FICO scoring method.
How accurate is my FICO score?
How accurate your FICO Score is can vary depending on the version of the FICO Score Credit scoring model used, the credit bureau whose credit report is used, and the date when the credit score is generated, among other factors. Keep reading to learn more about accurate credit scores. Take Control Of Your Credit.
Does FICO have a credit score?
FICO provides a single-number credit score, while major credit bureaus like Equifax, Experian, and TransUnion (not covered in this article) offer a more detailed look at an individual’s credit history along with the score. Lenders may use a combination of credit scores and credit reports in deciding whether to make a loan or issue a credit card.
Is Credit Karma more accurate than Experian?
There is no one credit score site that is more accurate than others. Your credit scores may vary depending on the credit score version you are checking, the day you check the score, and which credit bureau’s data is used to generate the score. Is Experian more accurate than Credit Karma? Neither provider is more accurate than the other.