Why do credit scores differ between bureaus or where you pull a credit report?
Credit scores can differ between bureaus because creditors are not required to report to any or all bureaus. Some smaller creditors only choose to subscribe and report a consumer’s credit information to 1 or 2 bureaus. Whereas, most major creditors will report to all 3 bureaus. Each account on a credit report should report which bureaus they report to. If there are discrepancies between bureaus, it should be easy to identity what creditors are causing the positive/negative effects.
Credit scores will also differ depending on where you retrieve the report, specifically between lenders and consumer websites.
There are 2 main types of software used to calculate a consumer’s credit score.
1) FICO scores are most widely used in the lending industry by mortgage lenders, auto dealerships, credit card companies. The FICO score ranges from 300-850. FICO has 5 variables to calculate the scores.
FICO scores are weighted as follows:
- Payment history 35%
- Length of credit history 15%
- Amounts owed 30%
- Types of credit uses 10%
- New credit 10%
- Total 100%
2) VANTAGE scores are most widely retrieved from the internet. Since this software is the most predominant on the internet, this is typically the score most consumers will find when they do their own research. VANTAGE scores range from 501-990. VANTAGE has 6 variables calculating the scores.
Vantage score are weighted as follows:
- Payment history 32%
- Utilization 23%
- Balances 15%
- Depth of credit 13%
- Recent credit 10%
- Available credit 7%
- Total 100%
Industry – Most of the lending industry use Fico credit scores. However, these scores are also industry specific. Consequently, a car lender’s fico score will be focused on your payment history on your auto loans and this score may be different from a mortgage or credit card score.
Consequently, due to the above factors, the only way to see a true FICO (lender) credit score is to have a lender pull a report. Nevertheless, the factors that determine your credit scores are well enough defined that an individual should be able to understand the types of behavior which will improve or hurt their credit scores.
Information provided courtesy of Continental Credit Repair (303-495-3244)