Why the difference in score

Submitted by Anonymous (not verified) on Wed, 09/15/2010 - 05:38
Forums
Credit repair

Hi all,

I just pulled my FICO scores from both Equifax (756) and TransUnion (722). What I don't understand is the big difference between the two scores.

The accounts reported on both are accurate but TU says that "There is no recent activity on your credit cards", which is obviously incorrect. I used my cards every month, and pay off in full. The "amount of debt" parameter is graded as "Great" by EQ and "Very good" by TU, but I am not sure if this is related with the statement above.

I am wondering if the score difference due to different formulas is justified. Any suggestion?

Thanks for any assistance.

ensurepune

Hi Wright

Welcome to credit-magic,

Algorithms used by each credit bureau is unique and thus outcome of the analysis could be somewhat different.So this could be the probable reason for the difference between two scores.

But ideally most of the financial institutions only take mean score of all the three credit bureaus into considerations.Thus difference in the score hardy matter (unless there is large gap between two scores)

Thanks
Ensure...........

Wed, 09/15/2010 - 10:16 Permalink
Aaron

Hi Wright,

The credit bureaus calculate4 their score individually. Thus, there is bound to be a difference in the scores. Moreover, nit all creditors and collection agencies report to all the bureaus. Check both the credit reports minutely. Check if there is any such account which is missing from any of the two reports.

As for TransUnion reporting

"There is no recent activity on your credit cards"

I think, you should dispute this.

Thanks,

Aaron

Wed, 09/15/2010 - 12:33 Permalink