Confluent Strategies/Equifax Training Portal
Chapter 26: Personal Solutions

Lesson 1: Score Variations

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IN THIS LESSON

Credit scores can vary due to several factors, and these variations can occur because different credit scoring models, credit bureaus, and lenders may use slightly different methods for calculating and reporting credit scores. Here are some common variations in credit scores:

  1. Credit Scoring Models: There are several different credit scoring models in use, with FICO and VantageScore being two of the most widely recognized. Each model has its own algorithms and methods for calculating credit scores, which can lead to variations in your score when you check it through different sources. Additionally, newer versions of these scoring models may weigh certain factors differently than older versions, potentially causing variations.

  2. Credit Bureaus: There are three major credit bureaus in the United States: Equifax, Experian, and TransUnion. These bureaus collect and maintain credit data on individuals, and the information they have may not be identical. Since credit scores are based on the data reported to the bureaus, variations can occur if there are discrepancies or differences in the data each bureau has on you.

  3. Lenders and Creditors: Different lenders and creditors may report your credit information to one or more of the credit bureaus. Some may report to all three, while others may only report to one or two. This can lead to variations in your credit report and, consequently, in your credit scores.

  4. Timing: Credit scores can fluctuate over time as new information is reported to the credit bureaus. Factors such as making payments on time, opening new credit accounts, or closing existing ones can affect your credit score. So, checking your credit score at different times can result in variations.

  5. Scoring Ranges: Credit scores can vary between different scoring models in terms of the numerical range. For example, FICO scores range from 300 to 850, while VantageScores range from 501 to 990. A score of 700 in the FICO model is not the same as a score of 700 in the VantageScore model.

  6. Credit Mix: Different scoring models may place varying levels of importance on different aspects of your credit history. For example, some models may weigh your payment history more heavily than your credit utilization, while others may have a different emphasis.

To minimize the impact of these variations, it's essential to monitor your credit regularly and ensure that the information on your credit reports is accurate. If you notice significant discrepancies, you can dispute errors with the credit bureaus. Additionally, understanding the specific scoring model and credit bureau used by a lender can help you anticipate variations in your credit score when applying for credit.