Credit score discrepancy
October 25, 2021 6:26 AM Subscribe
Why is my FICO so much higher than my individual credit scores?
My FICO and TransUnion/Experian scores are way off from each other. My FICO is currently 755, which is decent. But when I pull my TransUnion and Experian scores, they are both hovering around 700, which is meh.
I pulled both of those credit reports to make sure nothing is off that would be dragging my score down, and nothing is off! The only thing keeping me from having perfect credit in general is my debt-to-credit ratio, which I'm slowly but surely paying down. I otherwise haven't missed a payment in over 7 years or opened new lines of credit in that time either (good longevity).
So why is there such a vast difference between my FICO and the other two? Everyone has the same correct information, so why the discrepancy? What can I do to bring the other two up other than continue paying down my debt?
Thanks!
My FICO and TransUnion/Experian scores are way off from each other. My FICO is currently 755, which is decent. But when I pull my TransUnion and Experian scores, they are both hovering around 700, which is meh.
I pulled both of those credit reports to make sure nothing is off that would be dragging my score down, and nothing is off! The only thing keeping me from having perfect credit in general is my debt-to-credit ratio, which I'm slowly but surely paying down. I otherwise haven't missed a payment in over 7 years or opened new lines of credit in that time either (good longevity).
So why is there such a vast difference between my FICO and the other two? Everyone has the same correct information, so why the discrepancy? What can I do to bring the other two up other than continue paying down my debt?
Thanks!
It's possible that one is a FICO (which can be calculated from any credit bureau's data) and one is a VantageScore (ditto). I notice the VantageScore being lower.
posted by 8603 at 6:37 AM on October 25, 2021
posted by 8603 at 6:37 AM on October 25, 2021
What mosst said. Also, there are actually slightly different FICO scores used for, e.g., car loans vs. mortgages.
If you want more comfort, look at each bureau's report for derogatory information; one may be including some issue that's dinging that particular score (and may or may not be accurate). But I'm guessing whatever company is giving you the different number is using one of the different scoring models without explaining that.
posted by praemunire at 7:33 AM on October 25, 2021 [1 favorite]
If you want more comfort, look at each bureau's report for derogatory information; one may be including some issue that's dinging that particular score (and may or may not be accurate). But I'm guessing whatever company is giving you the different number is using one of the different scoring models without explaining that.
posted by praemunire at 7:33 AM on October 25, 2021 [1 favorite]
Anecdata, but I applied for some mortgages a few months ago, and the score my loan officer got for me was significantly higher than the scores I saw on the free sites. Like, 100 points higher. One of the three scores I see on the free sites (I think it's Equifax but I don't remember offhand) is consistently about 20-30 points higher than the other two, but none of them are anywhere near the number that my loan officer saw.
posted by kevinbelt at 9:54 AM on October 25, 2021
posted by kevinbelt at 9:54 AM on October 25, 2021
Where are you getting your "FICO score" from? According to ficoscore.com you can get a thing called a FICO® score from Experian, Equifax and myFICO and ... no one else.
If your "FICO score" is a number your bank gives you for free, then remember your bank makes money by lending its customers money, and therefore has an interest in you believing loans will be plentiful and cheap.
As for what you can do to boost your credit score(s), it depends on your circumstances and how you plan to use credit in the future. There's not enough detail in your question to say whether any of these options are likely to work or advisable, so these are just examples. But very generally speaking you can do any or all of: make on time payments, increase the average age of your lines of credit, reduce your total debt, and increase your available credit. Assuming you're not in a position to pay off loans in lump sums, increasing your available credit is the only one you can do without the passage of time. The easiest way to do it is to ask your bank to increase the credit limit on your existing credit cards. This takes 30 seconds online and is generally harmless (unless you use the increased limit to borrow more money). A more time consuming approach, that may (probably will!) result in a short term fall in your credit score, is to open new credit card(s). This will increase your total available credit and, assuming you don't borrow more money, reduce your debt to available credit ratio.
posted by caek at 12:02 PM on October 25, 2021
If your "FICO score" is a number your bank gives you for free, then remember your bank makes money by lending its customers money, and therefore has an interest in you believing loans will be plentiful and cheap.
As for what you can do to boost your credit score(s), it depends on your circumstances and how you plan to use credit in the future. There's not enough detail in your question to say whether any of these options are likely to work or advisable, so these are just examples. But very generally speaking you can do any or all of: make on time payments, increase the average age of your lines of credit, reduce your total debt, and increase your available credit. Assuming you're not in a position to pay off loans in lump sums, increasing your available credit is the only one you can do without the passage of time. The easiest way to do it is to ask your bank to increase the credit limit on your existing credit cards. This takes 30 seconds online and is generally harmless (unless you use the increased limit to borrow more money). A more time consuming approach, that may (probably will!) result in a short term fall in your credit score, is to open new credit card(s). This will increase your total available credit and, assuming you don't borrow more money, reduce your debt to available credit ratio.
posted by caek at 12:02 PM on October 25, 2021
This thread is closed to new comments.
Overall - the general guidance I hear is to pay attention to the data in each bureau's file, but not worry too much about the specific score. A difference that big suggests to me that the FICO score you're seeing may be based on different data, so if I were you I'd double check that, but if indeed it's the same, it must just be differences in the scoring model.
posted by mosst at 6:36 AM on October 25, 2021 [1 favorite]