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Today, we’re answering a great question from a reader! Why are credit scores different on different sites? As you’re working to improve your credit and raise your credit score, you may be asking: why is my FICO score different from TransUnion? It certainly doesn’t make sense that your credit score would be different on different websites, but it’s happening to you, and you’re frustrated. Let’s discuss!
Dear InCreditable Advisors,
Why does TransUnion say my credit score is 733 when myFICO says my TransUnion score is 689? I pulled both scores on the same day. Both credit reports contain the same information. Which score is right, and which one are lenders going to use?
Heather
Indianapolis, Indiana
Why Are My TransUnion and FICO Scores Different?
This has become a hot topic! We meet daily with consumers who are interested in understanding their real scores, and this confusion isn’t helping matters. The simplest answer is this: different credit scoring systems actually produce different results. You’ll get a different FICO score depending on where you purchase your score. After today, you’ll be sure you’re purchasing the correct one.
Not All Websites Sell Scores Used by Lenders
Many different websites will sell credit scores to consumers, but most of these are never used by lenders. In your case, Heather, the score you bought from TransUnion is their consumer version of your credit score, but it’s not your real FICO score. Only myFICO.com is the source for direct consumer access to FICO scores used by lenders. Surprising, right? That’s what we’re here for; to help you access the best information.
Why Do We Need a FICO Score At All?
At first, it can seem like needless red tape. Why not let each credit bureau determine and provide your score on their own? Why should we now be looking for this new, separate assessment? In short, it’s to protect you as the consumer. Fair Isaac Corporation (FICO) created the FICO score about thirty years ago in order to ensure that credit was being scored consistently and equitably. Previously, there were no rules to determine how scores were calculated, and sometimes things like gender or political affiliation were thrown in the mix. It was difficult to be sure of a level playing field.
Should You Avoid Getting Credit Scores Online?
This is not to say that getting your credit scores from online vendors is a bad idea. Even if they’re not the actual FICO score, checking your credit scores from a trusted seller can often serve as a guide for pointing you in the right direction.
If you pull your credit score from a reputable source and find that you have a very high score, then more often than not, you’ll have a good FICO score as well. Just be sure to check your actual FICO score before applying for a loan – this is what lenders will use to determine your rates.
In your case, Heather, don’t demand a lender’s best rates based on your TransUnion credit score of 733! Your FICO score of 689 is the score you should be basing your expectations on. Generally, a FICO score above 720 will qualify you for good rates on most loans. In the meantime, you can begin taking steps to raise your score.
How Often Should I Check My FICO Scores?
Before getting a loan for a major purchase, such as a home, you should check all three of your FICO scores – from each major credit bureau. MyFICO.com is the only place where consumers can access all three FICO Scores based on Equifax, Experian and TransUnion data. Most lenders will look at all three FICO scores when evaluating your loan application. At that point, don’t try to save a few dollars by buying the cheapest credit score you can find. Knowing your FICO scores can help you estimate what your monthly mortgage payments will look like and help you determine if you can truly afford a home.
We know credit scores can be confusing enough without having to figure out if you’re buying a FICO score. Many credit scores even try to mimic the FICO score range so they look very similar to FICO scores. Remember that FICO scores always say “FICO” when describing the score. We hope this helps you make sense of your credit scoring options.
Sincerely,
InCreditable Advisors
For more information please visit us at https://creditexperts.io/ and book an appointment today. We are Indianapolis’s only Licensed, Bonded & Insured full service credit consulting company, InCreditable Advisors, give us a call today and let us help you improve your credit at 317-202-1297 to schedule your appointment today.
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FAQs
Why is my FICO score different from my TransUnion score? ›
When the scores are significantly different across bureaus, it is likely the underlying data in the credit bureaus is different and thus driving that observed score difference.
Which credit score is more important FICO or TransUnion? ›FICO scoring is more holistic, which allows more Americans to qualify for loans and mortgages than most traditional bureaus' scores.
Why is my TransUnion score so much lower than my FICO score? ›Because there are varied scoring models, you'll likely have different scores from different providers. Lenders use many different types of credit scores to make lending decisions. The score you see when you check it may not be the same as the one used by your lender.
Why do I have different credit scores with different agencies? ›Your credit scores may vary according to the credit scoring model used, and may also vary based on which credit bureau furnishes the credit report used for the data. That's because not all lenders and creditors report to all three nationwide credit bureaus. Some may report to only two, one or none at all.
Which is most accurate credit score? ›Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.
What is an excellent TransUnion score? ›A very poor credit score is in the range of 300 – 600, with 601 – 660 considered to be poor. A score of 661 – 720 is fair. And an excellent score is in the range of 781 – 850.
Which of the 3 credit scores is most important? ›FICO® Scores☉ are used by 90% of top lenders, but even so, there's no single credit score or scoring system that's most important. In a very real way, the score that matters most is the one used by the lender willing to offer you the best lending terms.
What lenders use TransUnion only? ›- Citi Premier® Card. ...
- Chase Freedom Flex℠ ...
- Chase Sapphire Reserve® ...
- Capital One Venture Rewards Credit Card. ...
- Capital One Quicksilver Cash Rewards Credit Card. ...
- Delta SkyMiles® Gold Business American Express Card.
Your Credit Karma score should be the same or close to your FICO score, which is what any prospective lender will probably check. The range of your credit score (such as "good" or "very good") is more important than the precise number, which will vary by source and edge up or down often.
How accurate is TransUnion FICO score? ›TransUnion is Accurate, But May Conflict With Other Scores
Unfortunately, errors can happen from time to time. FICO and VantageScore both use a range of 300 to 850 to categorize credit scores.
Is TransUnion always the lowest score? ›
Neither score is more or less accurate than the other; they're only being calculated from slightly differing sources. Your Equifax credit score is more likely to appear lower than your TransUnion one because of the reporting differences, but a “fair” score from TransUnion is typically “fair” across the board.
Why is there a 100 point difference between TransUnion? ›If you have an installment loan that reports only to Experian, your Experian credit score may be very different Equifax and TransUnion. Delinquencies reported on a loan reported on one credit report, but not the others, is the most common reason why you'll see wide credit score discrepancies, like 100 points.
Which credit score is more accurate TransUnion or Equifax? ›Equifax: Which is most accurate? No credit score from any one of the credit bureaus is more valuable or more accurate than another. It's possible that a lender may gravitate toward one score over another, but that doesn't necessarily mean that score is better.
Do banks use TransUnion or Equifax? ›In conclusion. Credit card issuers and lenders may use one or more of the three major credit bureaus—Experian, TransUnion and Equifax—to help determine your eligibility for new credit card accounts, loans and more.
Why is my FICO score 100 points lower than Credit Karma? ›Some lenders report to all three major credit bureaus, but others report to only one or two. Because of this difference in reporting, each of the three credit bureaus may have slightly different credit report information for you and you may see different scores as a result.
Which credit score do most lenders use? ›FICO ® Scores are the most widely used credit scores—90% of top lenders use FICO ® Scores. Every year, lenders access billions of FICO ® Scores to help them understand people's credit risk and make better–informed lending decisions.
Where can I check my accurate credit score? ›Online: Visit AnnualCreditReport.com. By Phone: Call 1-877-322-8228.
Where is the most accurate place to get your credit score? ›Best Overall AnnualCreditReport.com
The Consumer Financial Protection Bureau confirms that AnnualCreditReport.com is the official website that allows you to access each of your credit reports from all three of the major credit bureaus—Equifax, Experian, and TransUnion—at no cost.
FICO 8 scores range between 300 and 850. A FICO score of at least 700 is considered a good score. There are also industry-specific versions of credit scores that businesses use. For example, the FICO Bankcard Score 8 is the most widely used score when you apply for a new credit card or a credit-limit increase.
What is the average US credit score? ›Credit scores help lenders decide whether to grant you credit. The average credit score in the United States is 698, based on VantageScore® data from February 2021.
Is A 650 A Good credit score? ›
A FICO® Score of 650 places you within a population of consumers whose credit may be seen as Fair. Your 650 FICO® Score is lower than the average U.S. credit score. Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.
What is the number one thing that affects your credit score the most? ›Payment History Is the Most Important Factor of Your Credit Score. Payment history accounts for 35% of your FICO® Score.
Which credit score do banks use? ›CIBIL is quite popular as it has been in the business for a long time. Non-Banking Financial Companies and banks use the credit score provided by CIBIL, Experian and Equifax to determine the potential risk of lending to a customer. The lenders make use of these scores fix the credit limit for all eligible customers.
Which credit score is used to buy a car? ›The FICO score is the most widely used score for auto loans. The score ranges from 300 to 850. The score is calculated based on credit mix, payment history, amount owed, average credit history and available credit.
Do lenders look at TransUnion or Experian? ›Experian offers FICO Scores, which are the most commonly used by lenders. However, to make sure that they have correct information, you should review your credit report once a year to make sure it's complete and accurate.
Is TransUnion close to FICO? ›No. In fact, FICO has one role while Equifax, Experian & TransUnion have another regarding your credit score. While the terms are used interchangeably and largely seen as synonymous in reality they couldn't be further from mirror images of one another.
Do banks look at TransUnion? ›They will usually pull either your Equifax or Transunion credit report. Some have had success of avoiding the hard pull by freezing Transunion and Equifax after the preapproval, but before the final decision). See real-time data in our Credit Card Database.
Is FICO usually higher or lower than Credit Karma? ›You've probably heard of Credit Karma – even the name sounds nice, doesn't it? But, despite that, you'd be surprised how many borrowers are shocked that their Credit Karma score is lower than the FICO scores their lender uses. Read on to find out why.
Is Credit Karma a true FICO score? ›Here's the short answer: The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus.
Which credit score is true on Credit Karma? ›If you are viewing your score on Credit Karma, the score you see is VantageScore® 3.0. While VantageScore® credit scores aren't used as widely as FICO® scores for credit decisions, they can still give you a good idea of where your credit stands.
Do lenders use TransUnion score? ›
While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage: FICO® Score 2 (Experian) FICO® Score 5 (Equifax) FICO® Score 4 (TransUnion)
Can I trust TransUnion credit score? ›Is TransUnion Legitimate? Yes. TransUnion is a legitimate credit bureau, and its credit reports are used by lenders to judge things like credit and loan applications.
How to raise TransUnion score? ›- Check your credit report. ...
- Pay your bills on time. ...
- Pay off any collections. ...
- Get caught up on past-due bills. ...
- Keep balances low on your credit cards. ...
- Pay off debt rather than continually transferring it.
One of the most common scores used by mortgage lenders to determine creditworthiness is the FICO® Score (created by the Fair Isaac Corporation). FICO® Scores help lenders calculate the interest rates and fees you'll pay to get your mortgage.
Why isn't Credit Karma accurate? ›This is mainly because of two reasons: For one, lenders may pull your credit from different credit bureaus, whether it is Experian, Equifax or TransUnion. Your score can then differ based on what bureau your credit report is pulled from since they don't all receive the same information about your credit accounts.
Is 750 TransUnion score good? ›A 750 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.
How do I get my true FICO score for free? ›You can get your FICO® Score for free from hundreds of financial services companies, including banks, credit unions, credit card issuers and credit counselors that participate in the FICO® Score Open Access program and offer free scores to customers.
Does TransUnion affect FICO? ›Question: Will checking my credit report hurt my credit score? Answer: Checking your own credit report won't hurt your score because it's considered a soft inquiry.
Is FICO your actual credit score? ›Basically, "credit score" and "FICO® score" are all referring to the same thing. A FICO® score is a type of credit scoring model. While different reporting agencies may weigh factors slightly differently, they are all essentially measuring the same thing.