There are three versions of every credit score because credit scores are calculated using the contents of people’s credit reports, and we each have three credit reports – one from each of the three major credit bureaus: Equifax, Experian and TransUnion. A common assumption is that since there are three credit bureaus, each individual must have three credit scores. But that implies there’s just one type of credit score, which is far from the truth. There are many different credit-scoring models and thus many different types of credit scores. You can find more details below.
Three Credit Scores: Myth vs. Fact
Myth: Many people think we each have three, and only three, credit scores, one from each major credit bureau. After all, anyone with a Social Security number who’s ever possessed either a credit card or a loan also has a credit report from each of these bureaus. So it would only seem logical for there to be three corresponding credit scores. But that, as it turns out, isn’t true.
Fact: Having three major credit reports does not mean that we have just three credit scores. Rather, it means there are three versions of each type of credit score that we have. Take the VantageScore 3.0 credit-score model, for example. We each have one of these scores based on our TransUnion credit report, another based on our Experian credit report and a third based on our Equifax credit report.
The same is true of the most popular version of the FICO score, FICO Score 8, as well as older iterations of this base score and FICO’s various industry-specific scores. There are three versions of each, though only two are available to consumers because of a spat between Experian and the Fair Isaac Corporation, the creator and namesake of the FICO score.
All in all, there are more than 1,000 different credit scores in use today.
Why You Only Need One: One of the most important things to understand about this three-by-many credit-scoring environment is that your score isn’t likely to differ much from bureau to bureau. Our three major credit reports contain largely the same information. What’s more, while differences do exist from one credit-scoring model to the next, it doesn’t really matter which model your score is based on. You won’t be seeing the same type of score a prospective lender sees, anyway, as most customize whatever scoring models they use to better suit their specific needs, whatever they may be. This process creates a final product that’s drastically different from anything you can access at home.
As a result, the best way to use your credit score is not as a direct indication of approvability for a particular account or a given rate but rather as a way to determine roughly where your credit stands and then monitor its trajectory over time. With that in mind, you can get your free credit score from WalletHub, based on the VantageScore 3.0 model and TransUnion credit-report data. Sure, there are other places to either buy a credit score or order one for free, and you can compare them here. But our admittedly biased belief is that WalletHub represents the best option because our scores update on a daily basis rather than the weekly-to-quarterly schedules on which all other providers operate.
Ask the Experts: 3-Score Monty
To learn more about the numerous credit scores each of us has, and the confusion that naturally causes, WalletHub asked a panel of money-management pros to share their thoughts on the following questions. See who they are and what tips they have, below.
- Do you think the average person knows they have more than one credit score?
- What do you think confuses people most about credit scores based on different bureaus’ credit reports?
- Do you think it’s important to check more than one type of credit score?
- What’s your favorite credit score tip?
Ask the Experts
Jesse Lineberry
CFP®, Instructor of Finance, Virginia Tech - Pamplin College of Business
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Tamra S. Connor
Ph.D., Associate Dean for Accreditation and Operations, Illinois State University - College of Business
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Arati Kale
Ph.D., Assistant Professor, Finance Department, Providence College, School of Business
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Connie Ostwald
Ph.D., Lead Faculty Economics, Colorado Christian University
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John R. Salter
Associate Chair and Associate Professor in the Department of Personal Financial Planning at Texas Tech University
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Terry E. Rumker
Certified Financial Planner, Director of the Eagle Investment Group and Assistant Professor of Finance in the College of Business and Economics at Ashland University
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More Experts
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Important Disclosures
FAQs
The three major credit bureaus are Equifax®, Experian® and TransUnion®. Credit bureaus are different from credit-scoring companies, such as VantageScore® and FICO®. Credit reports contain information about people's identity, credit history and credit activity as well as information from public records.
What is the best definition of a credit score in EverFi? ›
-A numerical rating of your credit-worthiness (how likely you are to pay off your debts).
What is the real credit score? ›
Lenders consider this score to help them make quick, accurate and reliable decisions regarding credit risk. A true FICO score ranges between 300–850 and gets calculated using only information in a consumer's credit report maintained by the three main credit bureaus— Experian™, Equifax® and TransUnion®.
What is a credit score quizlet? ›
Credit Score. - a numerical rating based on credit report information; represents a person's level of credit worthiness; heavily influences your approval for bank loans and credit cards.
Which of the 3 credit scores is most accurate? ›
Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.
Which credit report is most accurate? ›
Of the three main credit bureaus (Equifax, Experian, and TransUnion), none is considered better than the others. A lender may rely on a report from one bureau or all three bureaus to make its decisions about approving a loan.
What is a credit score short answer? ›
A credit score is a three-digit number, typically between 300 and 850, designed to represent your credit risk, or the likelihood you will pay your bills on time.
What is a credit score answer? ›
A credit score is a number that depicts a consumer's creditworthiness. FICO scores range from 300 to 850. Factors used to calculate your credit score include repayment history, types of loans, length of credit history, debt utilization, and whether you've applied for new accounts.
What score is most important for credit? ›
FICO® Scores☉ are used by 90% of top lenders, but even so, there's no single credit score or scoring system that's most important. In a very real way, the score that matters most is the one used by the lender willing to offer you the best lending terms.
Is AnnualCreditReport.com legit? ›
AnnualCreditReport.com is the official site to get your free annual credit reports. This right is guaranteed by Federal law. You can verify this is the official site by visiting the CFPB's website. Don't be fooled by look-alike sites.
Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
How to find your real credit score? ›
There are a few main ways to get your credit scores.
- Check your credit card or other loan statement. Many major credit card companies and other lenders provide credit scores for their customers. ...
- Talk to a nonprofit counselor. ...
- Use a credit score service.
A FICO Score is a three-digit number based on the information in your credit reports. It helps lenders determine how likely you are to repay a loan.
What is a credit score intended to measure _____? ›
A credit score is a prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports.
What is a credit score and why? ›
A credit score is usually a three-digit number that lenders use to help them decide whether you get a mortgage, a credit card or some other line of credit, and the interest rate you are charged for this credit. The score is a picture of you as a credit risk to the lender at the time of your application.
Do all 3 credit scores matter? ›
One credit bureau isn't more accurate than another, rather, they may simply have different methods of calculating your credit score. It's important to note that all three bureaus are used widely in the U.S. None of them are more “important” than the others.
Which credit score is most important, Equifax or TransUnion? ›
Neither your TransUnion or Equifax score is more or less accurate than the other. They're just calculated from slightly differing sources. Your Equifax credit score is likely lower due to reporting differences. Nonetheless, a “fair” score from TransUnion is typically “fair” across the board.
Should I check all 3 credit scores? ›
Because lenders choose which bureau they pull from, it's important for you to periodically check your credit report and FICO® Scores based on data from all three credit bureaus to ensure the information reported on you is accurate, up to date and that the FICO® Scores based on each credit bureau's data are reflective ...
Which credit score is used most? ›
FICO ® Scores are the most widely used credit scores—90% of top lenders use FICO ® Scores.
