The credit score is a numerical figure which is based on a level analysis of a person’s credit files, to represent the creditworthiness of an individual. A credit score is mainly based on a credit report, and the information is sourced from credit bureaus. A person’s credit score ranges from 300-850. A person with a higher credit score is considered to be more reliable.

Why is the credit score being used?

When you borrow money, either through a revolving account like credit cards or an installment account like auto loan/student loan, the information is gathered by credit bureaus. The bureaus record the data in the credit files and use them to calculate the credit score. Lenders such as banks and other institutions use credit scores to evaluate the potential risk of a customer and to mitigate losses due to bad debt. Lenders also use a credit score to assess which customers are likely to bring in the most revenue.

It is usual for scores to be different between agencies. It is up to the lenders to decide which particular information they report to the major credit agencies and which agencies they report in the first place.

When the scores vary across bureaus, it is generally because the underlying data in the credit bureaus is different. Therefore, the credit score of an individual keeps changing. So, we need to make sure the credit score which we are comparing are actual scores.

Why are the credit scores different?

There are some reasons why we might get different credit scores from each of the major credit reporting agencies. Here, find some of the most common situations below:

  • The ratings are determined from different dates. Since the scores might change at any time, it is most important to compare the credit scores from the same year.
  • The scores are calculated using different scoring models. Thus, we need to keep in mind that there are dozens of scoring models out there which might calculate the score differently.
  • The scores are calculated using separate and dissimilar credit reports. Some lenders report to three different credit agencies while others say to one or two, which means the credit agencies might be missing a few pieces of information that help or hurt the credit score.
  • Debt to Credit Ratio :The obligation to credit ratio is considered while calculating your credit score. The Debt to Credit ratio explains how much credit is available. The rate can cause your credit score to fluctuate.

For Instance, if there is a change in your credit card balances every month, the number of credit changes, thereby causing changes in the credit score.

Another factor named as late payment or early payment can also cause your credit score o change.

As a result, debt to credit ratio plays an important role.

What is the best credit score?

The most usual credit score range is from 300 to 850 points. Slight day-to-day variations in the credit scores are widespread and are not necessarily an indication that we are doing something wrong. The difference between the few points might not even matter. Anything in the mid 700’s and higher is considered as the excellent credit and will be greeted by easy credit approvals and the very best interest rates. It is also said that having a higher credit score can serve as a buffer if there are any negative occurrences in the report.

Remember, it can be challenging to keep track of all the credit scores as there are so many out there, and these scores keep changing with time.

Though a significant number of financial services depend on your credit score, you also need to keep in mind that credit score may vary across different agencies calculating them.

Some unknown truths about Credit Scores :

  1. As being the Lenders, we tend to report different credit information to credit bureaus at different times. This can lead to a change in information and data among bureaus.
  2. Also, at the time, when the final compiling of data is done, the entire report can be presented in a different form. They can record, display, or store the information differently.
  3. There could also be a possibility that you could have applied different names such as full name, first name, or maiden name. This can lead to disruption of the data or the files. Though the entire work is carried with due diligence, still in some instances, there could be a case where incomplete files or wrong data is being recorded. In some rare cases, one person’s credit information can appear on someone else’s credit.

4)Before we actually supply the primary information, there is a varied range of chains that are followed. The complete credit information is not directly reported to all the credit bureaus. The entire history of the credit report is supplied by the lenders, collection agencies, and the court records. As a result, the final information passed on to the credit bureau may differ.



We hope that you could get enough of know-how to understand the concept. Really, “Why are scores different” can be challenging to understand.

The mainframe being set concludes that the data has to be p[otected, and the same information is required to circulate to the credit bureau. They are having the right data generated will further lead to the actualization of the credit report.

Also, a self-check and monitoring of the data can be helpful.

Also, there is no excuse to count on as you avail of your credit score and credit report for free. Take full benefit and avail the opportunity.


At last, our primary intent is for you to learn and absorb the information we provide. Utilize all the resources. Locate and tap into your discrepancies to avoid the negative impact from occurring. With small steps taken, you can improve your overall credit rating.

So, understand your credit in a better way and achieve all your financial goals!