Why Are My Credit Scores Different?

- Jul 7, 2020 credit, Credit Scores0 comments

When people check their credit score, should it be by Credit Karma or on their Discover statement, etc., they look at the three-digit number. They take it as a fact that this is their credit score. Period. The same way they know their age and weight, they feel that now they know their credit score too.

But a credit score is not exactly like your weight, because your weight is a fact and it will not make a difference on which scale you weigh yourself.  Your weight will stay the same (unless the scale is broken), but a credit score does not work this way. Your credit score will not be the same on the Credit Karma site as it will be on Credit Wise or on Myfico etc.  So that brings us to the question of why are my credit scores different.

To answer this question let me first explain this:

The Difference Between a Credit Report and a Credit Score

There are three big credit bureaus that collect data on most American consumers which are: Experian, Transunion, and Equifax. These three companies collect the facts about your credit health and history, when you opened a tradeline, how much you spend on each credit card account, which type of loans you have, did, or did you not pay your loans on time, etc.

Then there are other companies, the most common one being FICO, which take the facts from the credit bureaus. Then, based on these facts they calculate a score which is known as a fico credit score. Every credit score is made using two components. First, they use the facts which are collected by the credit bureaus. Second, a credit model takes the facts and calculates a score.

How Many Scoring Models Are Used?

Fico has four scoring model versions where each has a custom scoring model for each of the credit bureaus (don’t ask why) and each has different models for different types of loans and they are customized for different banks too, so this brings you to a total of over a hundred Fico scoring models. Of course, every scoring model will result in a different Fico score. Don’t forget that this is only Fico. There are also different companies. For example, Vantage Score (that’s the scoring model that Credit Karma uses), which currently has three scoring models (with a fourth which will be released shortly) which are also customized models. Basically, no one person has one credit score. Everyone has lots of them.

Facts Are Different

As mentioned above, there are three credit bureaus, each collecting their own data. Therefore, one credit report might not contain the same information as the other, either because it was not yet updated, or because of some mistake. (You should always review your reports and make sure this does not happen. This can easily be done on Credit Karma.)

After reading the explanation above, the answer as to why are my credit scores different is very simple. Number one is because if you pulled your credit for a credit card, then the Fico score used will not be the same Fico model used for mortgages, etc.   Obviously, every credit model will result in a slightly different score. Also, it will all depend on which of the three credit reports were used and if the information doesn’t match, then the score won’t either. (This is beside the point that Fico customizes the same scoring model for each of the credit bureaus, for some odd reason).

Keeping Your Score Great With All Scoring Models

Even though every scoring model has unique ways of how they calculate a score, all scoring models will still predominantly look at the same factors which can be found here.  As long as you keep these factors positive your score should be good no matter which scoring model is used.

I hope to be posting more about the different scoring models in future posts so stay tuned! You can subscribe to our newsletter here.


Rather watch a video?


Was this article helpful?

Sam Sam Billo is the CEO of HelpMeBuildCredit.com. He has nearly a decade's worth of experience educating his many readers on everything credit. Sam spends his days checking out credit cards for a full report, from the minute benefit details to the shebang of welcome bonuses. Plus studying the ins and outs of building proper credit. It’s his favorite pastime and he loves sharing it with others.

Leave A Comments

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments

Recent Posts

Follow us

Click here to subscribe to
our WhatsApp channel

Todays
best offers

Chase Ink Business Preferred

Earn 100,000 points after $15,000 spent within the first 3 months.

more info

British Airways Visa Signature Card

Earn a total of 100,000 points after $20,000 spent within the first year.

more info

Chase Sapphire Preferred

Earn 80,000 points after $4,000 spent within the first 3 months.

more info

Iberia Visa Signature Card

Earn a total of 100,000 points after $20,000 spent within the first year.

more info

You May Also Like

The 5 Most Important Factors In A FICO Score

The 5 Most Important Factors In A FICO Score

The FICO score model is the mostly widely used scoring model. As per Fico, as much as 90% of lending decisions that are done using a scoring model, use the Fico scoring model. In this post we will discuss the 5 most important factors that Fico would look at in order...

read more
The Best Websites to Monitor Your Credit Report For Free

The Best Websites to Monitor Your Credit Report For Free

In today’s day and age, we hear daily in the news of new hacks and new identity theft stories. By now everyone knows how important it is to properly monitor your credit report to make sure that no thieves are able to open any credit cards or loans on your name. There...

read more
Credit Scores And Mortgages: Here Is What You Need To Know

Credit Scores And Mortgages: Here Is What You Need To Know

Shopping for a mortgage but got bad credit? You are not alone! I invited a great mortgage expert Chaim Tarkieltaub from Mint Capital to explain the differences between the different mortgage products available for consumers at all stages of credit. Let's explore the...

read more
Intoducing FICO® Resilience Index

Intoducing FICO® Resilience Index

What is FICO® Resilience Index? Fico now has another tool to calculate how consumers use credit. The FICO® Resilience Index was created specifically for hard financial times. Lenders will be able to decide if a consumer can handle his finances during hard times. They...

read more
Getting Approved For A First Credit Card

Getting Approved For A First Credit Card

Credit is not something you are automatically born with. It is something you need to learn how to build on your own. The best way to build your credit is by getting approved for credit cards. But, hey! How do you get approved for credit cards without credit? Stay...

read more
Credit Utilization

Credit Utilization

One of the biggest factors that credit models look at when calculating a credit score is credit utilization. Credit utilization means how much of your credit line you utilize. The less money you spend on your credit cards, the less money you have in debt, compared to...

read more
Piggybacking Credit- Everything You Need to Know

Piggybacking Credit- Everything You Need to Know

What Is Piggybacking Credit? Piggybacking credit is having a third party, a creditworthy individual, add you to their credit card as an authorized user. This will allow you to receive the credit benefits from that account, helping you improve your own credit score...

read more
Does Closing A Credit Card Hurt Your Credit?

Does Closing A Credit Card Hurt Your Credit?

  People are always asking me: Does closing a credit card hurt your credit? Closing a credit card does not hurt your credit directly. But closing a credit card may hurt your credit indirectly. Confused? Let’s explain…   What Is Credit?   First, let’s go...

read more
Medical Collections

Medical Collections

Chana F. is a working mom, juggling work and taking care of her four children. Life for her was always busy, but one day her oldest daughter started complaining about severe foot pain and she always seemed to be tired. Chana, as a responsible mother, got in touch with...

read more

Download link sent
succesfully

Got it *please check your promotional inbox

Error sending download link

Try Again