Many people are surprised to learn they do not have a credit score. They have many. Different lenders see different numbers, and they can vary by dozens of points. Here is why.
Three reports
A credit score is calculated from a credit report, and in the U.S. there are three major credit bureaus: Equifax, Experian and TransUnion. Each keeps its own file on you, built from what lenders report to it, and lenders do not always report to all three. So your reports can differ.
Two scoring companies, many versions
The scores themselves come mostly from two companies: FICO and VantageScore, a company created by the three bureaus. Both typically use a range of 300 to 850. Each has released several versions over the years, and lenders often stick with older ones. Mortgage lenders, auto lenders and card issuers may each use a different model. The score a free app shows you may not be the one a bank sees.
What goes into it
FICO says its scores are built roughly from five factors: payment history (the biggest, about 35 percent), amounts owed relative to your limits (about 30 percent), length of credit history, new credit, and the mix of credit types. In practice, two habits do most of the work: paying every bill on time and keeping card balances low relative to limits.
Check your reports, free
Under federal law you can get your credit reports from all three bureaus for free at AnnualCreditReport.com, the official site. Weekly free reports, first offered during the pandemic, were made permanent in 2023. Checking your own report does not hurt your score. Look for accounts you do not recognize and errors in payment history, and dispute anything wrong directly with the bureau.
Your score will always move around. Your reports are what you can control, so start there.
Sources: AnnualCreditReport.com; What is a credit score?, Consumer Financial Protection Bureau; What’s in my FICO Scores?, myFICO.
