Why Do Credit Scores Look Different to Consumers Than Lenders?

Highlights:

• Your credit scores may vary, but the differences don't mean that any of the scores are inaccurate.
• Your credit scores may differ due to the credit reporting agency your lender uses.
• When you check your credit scores, you may not be seeing the same credit score numbers as your lender.

Imagine that you are in the market for a new car or house. Before you even start looking for your new investment, you decide to look at your credit scores. After all, you want to know how much you may be able to get a loan for and at what rate. But when the lender pulls your credit score, the numbers don't match with what you pulled. Why are the credit scores different when you pulled them versus when the lender pulled them?

There are a few reasons that the credit scores you see may vary from what a lender sees. But, these discrepancies don't mean that either score is inaccurate.

Isn't there only one type of credit score?

It's a common misconception that everyone has only one credit score. In reality, there's several credit scores you may have that may vary and change often. These scores may reflect your financial information and payment history in different ways. Here is why your credit scores differ.

• Different credit scoring models. The companies that create credit scores use their own models to create your credit score. Even within a single company, there are often different scoring models. These different scoring models may be for specific types of lenders. For example, credit scores for auto loans may vary from credit scores for credit cards or mortgages.

Why are my credit scores different?

Your credit scores can vary due to what information is included in your credit reports. Your credit scores might also differ based on which NCRA (Equifax^®, Experian^®, or TransUnion^®) your lender uses. Some lenders only report to one or two NCRAs. This means your credit history could look different to each NCRA.

When you check your own credit scores through an Equifax product, it’s a VantageScore^®. VantageScore is a tri-bureau credit scoring model that offers consistent scores across all three NCRAs. Each NCRA uses the same formula created by VantageScore, but bases the information it measures on your unique credit file with each organization. This means that, because your credit files often differ between reporting agencies, your VantageScore may look slightly different from one credit reporting agency to another.

Does it matter when I last pulled my credit report?

Your credit report is always changing, so it matters when you pull your credit report. Your credit scores might look different to lenders if the credit reports were updated since the last time you checked. When you make a payment, it doesn't show up on your credit report immediately. There is often a delay before the payments are reflected on your credit reports. After you do anything that could impact your credit scores, be sure to check your credit reports.

How can I check my credit reports with Equifax?

The credit scores that you see may be different from what your lenders see. But, it is still smart to check them yourself. Also, be sure to check your credit reports. If you find accounts or balances you don't recognize on your credit reports, it could be a sign of identity theft. With Equifax Complete™ Premier, you can track changes to your Equifax credit report. You can also receive alerts if your personal information is at risk of being on the dark web. It may be confusing when your credit scores don't match what your lender sees. But knowing why these numbers differ can help you better understand your credit.