I checked my credit report and my 3 scores are different! Why is that? Is this considered bad?
If comprehending your credit score wasn’t complicated enough, having 3 individual credit scores makes matters even more strenuous to understand. If you find yourself asking why and how these credit score agencies came about, I will give you a little insight and hopefully give you a better understanding.
THE BIG 3
As of today, there are 3 national credit reporting agencies in the USA. Consisting of Equifax, Experian, and TransUnion, which are the most used. These reporting companies are private businesses, in which creditors report your financial information to each other. These agencies are competitors of each other, and do not usually distribute information. They were constructed separately. The information is supplied by lenders, collection agencies, and court orders. Having applying for credit under a different name (Ex: James Smith versus Jim Smith) or your maiden name will create partial files at agencies. Lenders tend to report various information at separate times resulting in one agency acquiring more up to date information than another. Another aspect to keep in mind is they may record the same information differently.
Let’s take a closer look as to which key elements are factored with Equifax, Experian, and TransUnion. 
EQUIFAX
· Uses Equifax Credit Score Calculator
· Scores range from 280-850 (higher score indicates lower risk)
· Calculated slightly different than standard FICO score
· Equifax calls FICO score the BEACON score
EXPERIAN
· Uses the PLUS score credit scoring system
· Scores range from 330-830 (higher score indicates lower risk)
· Part of National Score Index used to calculate consumer financial statistics around the country
· Often called Experian/Fair Isaac Risk Model
TRANSUNION
· Uses FICO scoring system called EMPIRICA
· Scores range from 300-850
· Calculated based on several elements including, payment record, payment history, types of credit, and total amount owed
Some lenders take more into consideration than your credit score alone. When making assessments, several methods are used to determine your creditworthiness. A high credit score alone will not assure a loan, or a line of credit.
Your scores influence how much and what terms you will be offered. Before any major purchase, check all 3 of your FICO scores at least 6 months in advance. Reason being, make sure you are conscious of every aspect in your report. Make time to correct any errors you discover. This will also give you time to increase your credit score if needed.