How Do the Three Credit Bureaus Report Your Credit Score?

Credit report with score

Want to know how your credit score is doing? You can check by getting a credit report from one of the three major credit bureaus, but you might just find that scores vary between them.
Below, we’ll discuss:

  • What Credit Companies Do

  • How Scores Are Created

  • Why Your Score Could Vary

What Are Credit Companies?

There are three major credit bureaus in the United States: Equifax, Experian, and TransUnion. Also called credit reporting agencies, they collect consumer credit information and resell it to interested parties in the form of a credit report. You’re also entitled to your own free report each year.
Only businesses with a legally valid reason for reviewing your credit report can access it. A few examples of this include:

  • Banks: Enquire for a credit report when you want to take out a mortgage

  • Auto Dealership: View your report before you purchase a car on credit

  • Businesses: Your information can also be sold to businesses that want to prescreen you for their products or services

Why Do Different Credit Bureaus Give Different Reports?

Try getting a free personal credit report from all three major U.S. credit bureaus and you’ll probably be shown a different credit score and perhaps a different credit rating each time. That doesn’t mean there’s been a mistake – differences simply exist because credit companies often work with varying data.
Most of the information collected by the three credit bureaus is similar, but one may have unique information that wasn’t captured by the other two. It’s also worth keeping in mind that lenders report credit information to the credit bureaus at different times, so one agency’s information could be more up-to-date than its rivals. If you’re working to improve your credit score, you might want to give all agencies a chance to catch up.
If you have a different score with each credit bureau, it’s almost certainly nothing to worry about. You should only get in touch if one rating is radically different.

Speak to Xpress Cash About Improving Your Credit Score 

If you need to discuss anything from credit score ratings to loan application processes, simply contact Xpress Cash or visit your nearest location – you’ll find branches across Idaho, Michigan, and Wisconsin.