What Are Some Differences Between the Three National Credit Bureaus?


Quick Answer

The major difference a consumer sees between the three national credit bureaus, Equifax, Experian and TransUnion, is these three bureaus in all likelihood produce differences in a consumer's credit score. There are several reasons to account for these differences: the sources they engage for credit information, the businesses they are affiliated with and the use of proprietary scoring models in credit scoring, notes Experian.

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Full Answer

Consider the number of options the major credit bureaus have in obtaining consumer information. They rely on their own data collection. A contributing factor to score difference is they also obtain reports from local and regional credit reporting bureaus. The national credit reporting bureaus use this third-party data in credit score calculations. The three credit reporting agencies do not necessarily obtain information from the same local and regional sources. A difference in data can also result in a difference in scoring, according to Experian.

A second reason that causes this credit score difference is the credit bureaus rely on information from businesses. Businesses are not obligated to report credit information to any credit bureau. Businesses may choose not to report any credit information, or they may decide to report this information to just one or two of the national credit bureaus, states Experian.

The third reason a difference in credit scores occurs is there are a number of proprietary scoring models in use. Identical scores could not be achieved until the three credit bureaus collaborated in creating the VantageScore product. The VantageScore product can only produce identical scores if it has identical data to work with, explains VantageScore.

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