Why Are There Different Credit Scores? (And Which One Matters)

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Check your score in three places and you’ll probably get three different numbers. That’s normal. It doesn’t mean one of them is wrong. Here’s why your scores differ and which one matters when you apply for credit.

Reason 1: Different scoring companies

The two big names are FICO and VantageScore. FICO scores are used in most lending decisions. VantageScore was created by the three credit bureaus, and it’s what most free apps like Credit Karma show. The two models weigh your history differently, so the same report can produce different numbers.

Reason 2: Different versions

Each company has many versions. FICO Score 8 is the most common for credit cards and personal loans. Most mortgage lenders still use older versions (FICO 2, 4 and 5). Auto lenders often use FICO Auto Scores, and card issuers may use FICO Bankcard Scores. Newer versions like FICO 10 and VantageScore 4.0 treat things like medical debt and paid collections differently. See which credit score lenders use for the full breakdown.

Reason 3: Different credit bureaus

Equifax, Experian and TransUnion each keep their own report. Not every lender reports to all three, and updates arrive at different times. If a card shows up on one report and not another, your scores will differ even with the same model.

Reason 4: Timing

Scores are calculated when they’re pulled. If your card balance was high on the day one score was pulled and paid off by the next, the two scores will be different.

Watch out for “educational” scores

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 scores lenders use. The lesson: always know which model and version a score is. More in what is your true credit score.

So which score matters?

The one your lender pulls for your type of loan. For a mortgage, that’s the middle of your three mortgage FICO scores. For everything else, FICO 8 is a good estimate.

Because every score starts with your reports, the best move is to keep all three accurate:

• Pull your free reports weekly at AnnualCreditReport.com.
• Dispute errors. Dovly automates TransUnion disputes.
• Monitor all three bureaus with SmartCredit so nothing surprises you.

Getting ready for a mortgage? The Rate Update can show you the scores a lender will actually see.

Frequently asked questions

Why is my Credit Karma score different from my lender’s score?

Credit Karma shows VantageScore 3.0. Most lenders use a FICO score, often an older or industry-specific version, so the numbers differ.

Which bureau is most accurate?

None is more accurate overall. Each has different data, which is why you should check all three reports.

How far apart can my scores be?

Differences of 20 to 50 points between models and bureaus are common and don’t mean anything is wrong.

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.