Credit Reports: Why Do I Have Three Different Credit Scores?

For mortgage loan approval, credit reports are normally pulled from three separate companies, Equifax, Transunion, and Experian. It is typical for each company to have a different score. There are several reasons for this.

1. Each bureau uses different methods to interpret the data, placing greater significance is some areas than others.

2. Data providers do not always relay the information to all three bureaus at the same time, which will result in different scores.

3. Because information is always changing, collecting scores at different times will also alter the scores.

4. Each bureau uses different methods to retrieve their data, often signing exclusive agreements with their data providers.

5. Using various nicknames when signing for things can result in some of your information not being recorded with all three bureaus, which would alter the scores.

6. Inaccurate information, from another person with the same name, may appear on one of the reports, potentially altering the score.

Because of these variations, most mortgage lenders collet all three reports, and use the middle score in the application process.

It can take time to correct mistakes, so it is important to check your credit from all three bureaus at least once a year. You can go directly to each of them to receive your report.

For more information, contact the Alfriend Group, at 614-395-1776.

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