Posted on: 25th Sep, 2007 05:57 am
Can someone help me understand these credit report discrepancies. I have a subscription to Truecredit which allows us to pull our credit report at any time. I applied for a mortgage and they pulled my report on 9/19 from Credit Plus and their are signficant differences in the scores. Scores according to Truecredit, Equifax 550, TU 550, Experian 544. The report my broker sent me from Credit Plus, Equifax 482, TU 533, and Experian 555. The Truecredit score is from a new report pulled yesterday 9/24. What am I missing?
Ted,
Credit scores normally vary from agency to agency. It is not uncommon to have 3 scores from one credit vendor and have 3 completely different scores with another. As you have found out. It is important to verify that the information contained in both reports are accurate.
Also keep in mind that scores do update on a regular basis and it is possible that the score had just been updated since the first inquiry.
Another thing to consider is where the score comes from. Different types of lenders use different scoring models when evaluating your credit. Your score may be different at a home lender than it is at a car dealer.
Also consider this. I believe that when you use a credit monitoring service their scoring is not the same score that a lender would have.
And last but not least, far from it, more importantly is what is actually in the report. On time payments, low balances and good debt to income make up for a good credit score. The times when you see the biggest differences are when you are dealing with collections and chargeoffs and how they are recorded. Normally with good scores you don't see as large of a difference between the different reports.
So the moral of this story is this... Check that both reports are accurate. If they are not have them updated to reflect your current situation. Always pay bills on time and don't use all available credit and a good credit score will follow.
Credit scores normally vary from agency to agency. It is not uncommon to have 3 scores from one credit vendor and have 3 completely different scores with another. As you have found out. It is important to verify that the information contained in both reports are accurate.
Also keep in mind that scores do update on a regular basis and it is possible that the score had just been updated since the first inquiry.
Another thing to consider is where the score comes from. Different types of lenders use different scoring models when evaluating your credit. Your score may be different at a home lender than it is at a car dealer.
Also consider this. I believe that when you use a credit monitoring service their scoring is not the same score that a lender would have.
And last but not least, far from it, more importantly is what is actually in the report. On time payments, low balances and good debt to income make up for a good credit score. The times when you see the biggest differences are when you are dealing with collections and chargeoffs and how they are recorded. Normally with good scores you don't see as large of a difference between the different reports.
So the moral of this story is this... Check that both reports are accurate. If they are not have them updated to reflect your current situation. Always pay bills on time and don't use all available credit and a good credit score will follow.
I think the credit report should be accurate all around. Having these companies report different scores is just plain unacceptable in my book. Its no wonder people have these types of discrepencies. These shouldn't be occuring in the first place because this kind of stuff hurts our scores. There shouldn't be a varying degree in the numbers. If one place where you get your credit pulled is saying 650 for a mid score than every other place should also be reporting the samething.
And here I thought are only problem was medical insurance companies. Now the credit bureaus can't even get it right.... or are they purposly doing this so we, consumers get so frustrated when we don't get approved for a loan or whatever.
And here I thought are only problem was medical insurance companies. Now the credit bureaus can't even get it right.... or are they purposly doing this so we, consumers get so frustrated when we don't get approved for a loan or whatever.
Hi Ted,
The discrepancy that you are facing now may be due to the different Credit Report Models that you and your broker have used. The credit report that you have pulled out from Truecredit might have been based on a Consumer Model whereas your broker might have used the Mortgage Model. The information provided to both these models is the same but the importance given to each 'Trade Line' (entry made by credit grantor describing consumer's account status and activity) is different. A Mortgage Model is going to put more emphasis on 'Trade Line' which will affect your mortgage. It will also be more conservative in its scoring than the Consumer Model.
The credit scores from Equifax, Experian and TransUnion vary from each other because all creditors do not report their information to all the three agencies. So a Reporting Agency might be preparing its report with incomplete information. Even each one of them uses a slightly different formula to calculate the scores.
Check both the reports extensively to see if there is any mistake. If you find one, immediately bring it to the Credit Agency's attention.
The discrepancy that you are facing now may be due to the different Credit Report Models that you and your broker have used. The credit report that you have pulled out from Truecredit might have been based on a Consumer Model whereas your broker might have used the Mortgage Model. The information provided to both these models is the same but the importance given to each 'Trade Line' (entry made by credit grantor describing consumer's account status and activity) is different. A Mortgage Model is going to put more emphasis on 'Trade Line' which will affect your mortgage. It will also be more conservative in its scoring than the Consumer Model.
The credit scores from Equifax, Experian and TransUnion vary from each other because all creditors do not report their information to all the three agencies. So a Reporting Agency might be preparing its report with incomplete information. Even each one of them uses a slightly different formula to calculate the scores.
Check both the reports extensively to see if there is any mistake. If you find one, immediately bring it to the Credit Agency's attention.
HI TedN,
Each of these 3 credit reporting agencies are independent of each other and they collect your credit history information individually. As these agencies do not share data, so it is quite likely for the discrepancies to occur.
Each of these 3 credit reporting agencies are independent of each other and they collect your credit history information individually. As these agencies do not share data, so it is quite likely for the discrepancies to occur.
Hi TedN,
The three credit agencies will never be exact, because the companies that report to the agencies report at different times,leaving room for these problems to occur.
The three credit agencies will never be exact, because the companies that report to the agencies report at different times,leaving room for these problems to occur.
Thank you for the advice. I understood that the three bureaus scores would be different, but was confused about why Experian for example would have a different score between Truecredit, and the one my broker received. I now understand the differences between the types of reports. I must say that I think its a load of crap. Anyway thanks for the info.
It's my pleasure to help you TedN.
I agree with wildstorm. I have the same thought scenario about these credit agencies mucking with our scores on purpose to keep consumers in an uproar and hoping we give up. There should only be one major credit reporting agency if you ask me. Everything is a money game and I'm sick of it.