What Is Your True Credit Score? Educational Scores vs. Lender Scores

Disclosure: Some links in this article are affiliate links. We may earn a commission if you sign up, at no extra cost to you.

There are a lot of credit scores out there: FICO, VantageScore, TransRisk, bureau “educational” scores, insurance scores and more. So which one is your true credit score? The honest answer: the one your lender uses for the loan you’re applying for.

Why so many scores?

Every scoring company and every version reads your credit report a little differently. Some scores are built for lenders to make decisions. Others are “educational” scores sold or given to consumers to show a general picture. They can be several dozen points apart and all be calculated correctly.

A warning from the CFPB

In 2017, the Consumer Financial Protection Bureau ordered TransUnion and Equifax to pay more than $23 million in fines and restitution for deceiving consumers about the credit scores they sold. The bureaus had marketed educational scores as if they were the same scores lenders use. According to the CFPB, lenders rarely used them. The models lenders do use most are FICO scores.

The lesson: a score is only useful if you know what it is and who uses it.

Educational scores vs. lender scores

• FICO scores are used in the large majority of lending decisions, including almost all mortgages. FICO 8 is the most common version for cards and personal loans.
• VantageScore was created by the three bureaus. Some lenders use it, and it’s what most free apps show. It’s accurate for its own model but won’t match your FICO score.
• Bureau educational scores (like TransUnion’s older TransRisk score or Experian’s National Equivalency Score) are mostly for consumer education.
• Insurance scores are separate models insurers use to price policies.

So which score should you watch?

Use a free score to watch the trend. Use a FICO score to know where you stand.

• Credit Karma gives you free VantageScore 3.0 scores from TransUnion and Equifax. That’s great for spotting changes.
• SmartCredit adds monitoring and alerts so you catch new accounts, late payments or errors quickly.
• For lender-grade FICO scores, check your card issuer or bank. Many show a free FICO 8. myFICO.com sells the full set, including mortgage versions.

We compare the options in what is the most accurate credit score site and Credit Sesame vs. Credit Karma.

All scores start with your report

Every score, true or not, is calculated from your credit report. If the report is wrong, every score is wrong. Pull your free reports at AnnualCreditReport.com and dispute anything inaccurate. Dovly can automate TransUnion disputes (see our Dovly review). See the real problem with credit reports for the step-by-step.

Getting ready for a mortgage?

For a home loan, your true score is the middle of your three mortgage FICO scores. The Rate Update can show you those numbers and what it would take to reach a better rate tier.

Affiliate disclosure: some links on this page are affiliate links, and we may earn a commission if you sign up, at no extra cost to you. Dan Frio | NMLS #246527 | PBT Bancorp | NMLS #257781. Mortgage products are originated by PBT Bancorp, NMLS #257781. Equal Housing Lender.