Why Are My Scores Different On Experian, Equifax, And Transunion?
Credit scores are one of the more mysterious aspects of personal finance. Your score can change frequently, and it varies depending on which credit bureau’s version of your score you’re looking at.
We’ll explain what a credit bureau is, why Experian, Equifax, and TransUnion show different scores, if one bureau’s score matters more than the others, and ways to improve or build your credit score.
What a credit bureau is
Credit bureaus are companies that collect consumer credit information. The information is compiled into a credit file or credit history and calculated into a credit score. The information is sold to creditors like banks, credit card companies, landlords, and employers. The information is used to decide if you’re a reasonable risk and should be offered a loan, credit card, apartment, or job.
Why credit scores differ
There are three main credit bureaus, Experian, Equifax, and TransUnion. Each has a different formula for turning the information in your credit report into a credit score. That’s one reason your score differs. These are some others:
Not all creditors report to all three bureaus. If your credit card company only reports to Experian, for example, the information won’t be on your Equifax or TransUnion reports.
A hard inquiry happens when a potential creditor pulls your credit report. Hard inquiries drop your score by a few points. Most creditors rely on one, maybe two credit reports; they typically don’t pull all three. Those hard inquiries will only appear on the report of the bureau they pulled your credit from.
Most creditors report account information to the credit bureaus every 30 days. But not all of them report on the same day, so your credit reports and, therefore, scores change often as new information is reported.
While your credit score will differ by a few points, it will generally still fall within the same range no matter which score you’re seeing. The ranges are:
Bad/Poor: 300-629
Fair: 630-689
Good: 690-719
Excellent: 720-850
Minor fluctuations in your credit score are nothing to worry about. Nor do you have to strive for a “perfect” credit score. A score over 760 is generally good enough to get you the lowest interest rate when applying for credit. But it’s possible to be approved for credit cards, auto, home, personal, and student loans, apartments, and jobs with lower scores.
Which score matters more
When it comes to your credit score, does your TransUnion or Equifax, or Experian score matter more? One bureau’s score matters more than the others if the potential creditor, lender, landlord, or employer only checks one or two bureau’s credit reports. So if you applied for a credit card and the company only pulls your Equifax report, your Equifax score matters more than your Experian or TransUnion!
Equifax is a good credit bureau as Experian and TransUnion. All three bureaus are trusted sources for consumer credit information.
Improve your credit score
Credit is an important part of personal finance in the U.S. It can be tough for those new to the country or young people to build credit. Upwardli was created with the needs of those people in mind! We can help you build or improve your credit score, find financial providers who understand that not everyone has a Social Security number or credit history, and understand how the U.S. financial system works. Upwardli is here for you!
