Credit Bureaus and Your Credit Score

As credit score repair experts, we often receive questions on how to go about credit score repair. Before you can attempt credit score repair, you need to understand how credit bureaus work and how they affect your credit score.

Do the three credit bureaus each have their own scoring system?

Yes, each of the three credit bureaus compute their own credit scores, which can make credit score repair a little tricky. Equifax’s is called “ScorePower,” Experian dubs theirs “PLUS” score, and TransUnion has a credit score without a catchy name. In addition to these scores, each credit bureau also sells a “VantageScore.” For your credit score repair to work, you should be aware of all of your credit scores.

Why do my scores differ between the 3 credit bureaus?

When people generally speak about your credit score, they are referring to your FICO score–or the one calculated by Fair Isaac Corporation. To understand credit score repair, you should know that Fair Isaac actually calculates three different credit scores–one for each of the big three credit bureaus. Since the models for each bureau were created separately, your scores may differ slightly from bureau to bureau, despite your information being identical for all three.

If you want to start your credit score repair, you should be aware of the difference between minor and major credit score inconsistencies. Though the three bureaus’ unique credit scoring models ensure that there will always be some minor discrepancies in your scores for each credit bureau, major score discrepancies will arise due to these circumstances:

  • Lenders, collection agencies, and court records supply the information on your credit report. Not all of your credit report may be reported to each credit bureau, meaning that your reports and thus your scores could vary greatly. For credit score repair, be aware that not every bureau will have the same information.

  • If you applied for credit under another name (like Bill Jacobs instead of William Jacobs, or under your maiden name), credit reporting agencies may have incomplete or fragmented reports. Sometimes incorrect information, like a mistaken digit in a social security number or the wrong address, can make someone’s information show up on the wrong credit report. This could wrongfully damage your credit score, so you should be aware of this for credit score repair.

  • Another cause of differences between credit scores? One credit bureau could have more updated information than another because lenders give credit information to the bureaus at different times. In credit score repair, you must be aware of which bureau is most up-to-date and work to get the others updated.

  • Also, because of the differences in the way they calculate credit scores, the three credit bureaus could record the same information in different ways. This might seem frustrating when it comes to your credit score repair, but there are still ways that you can increase your credit score.

Understanding how the three credit bureaus work and how to go about credit score repair can be tricky. If you need help with credit score repair, Certified Credit Experts would be happy to help. Call our Lee’s Summit or Leawood locations at (816) 875-9305 or (913) 971-0090 and start your credit score repair today!

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