Last week, we talked about differences in your credit score among the three credit-reporting agencies (CRAs). While Equifax calculates your Equifax Credit Score based on information from all three agencies, other companies may be calculating your credit score differently.
I usually get questions about differences in credit scores when a consumer is checking his or her credit report to make a big purchase—like a car—or to apply for a mortgage.
There are different credit score models available to lenders. Some use industry-weighted scores, and others use blended scores from all three CRAs. The lender determines which score model it prefers.
Plus, a credit score is a moving target. It could change every day as credit grantors, public records, and collection agencies report data.
How Is My Credit Score Calculated?
Credit scores are calculated using data from your credit report. Check out this blog for more details on what goes into your credit report. The information in your credit file may differ across the three CRAs. Because your score is calculated using the information in your credit file, and your credit file may differ by agency, there may be differences in your scores. That’s why it’s important to periodically review your credit reports and scores from all three CRAs to ensure the accuracy of the credit file data.
Since your credit file changes as credit line balances change, account statuses change, etc., your credit score may have changed if there has been any key activity on your credit file since the last time you checked it.
Equifax calculates your credit score from all three of your credit files—from Equifax, Experian, and TransUnion—using the Equifax Credit Score™, which is a proprietary credit score model developed by Equifax. Credit scores calculated based on this model may differ from scores used by other companies.
If your Equifax Credit Score differs greatly from the score your lender has calculated, you might want to bring a recent copy of your Equifax Credit Score to the lender. You can then compare the differences and figure out which information is missing or inaccurate.
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