Yes, we get it. It’s confusing that our credit scores can be different depending on the provider. We hope that this answer will help to explain why!
There are several reasons why your scores from Experian, TransUnion and Equifax are typically different. The three credit reference agencies (CRAs) are different companies, and each one maintains its own credit report information. Given this, it is likely that your three credit reports will be at least slightly different at any point in time.
One of the reasons your credit reports may vary has to do with the companies that report information to the credit reference agencies. Many lenders furnish information to all three major credit bureaus, but some may furnish information to just one or two of them.
For example, Thames Water only reports information on your bill payments to Experian and Equifax but not TransUnion. These kinds of differences in data result in distinct credit reports with each CRA and can lead to differing credit scores across the bureaus.
Should you take a credit card from Pillar we are happy to confirm we will report your usage to all three CRAs. We think it’s only fair but sadly that isn’t what many companies think or do!
It’s also important to remember that the way the CRAs calculate their scores is different. The scales of each firm are different and the numbers mean different things.
For example, even though both Equifax and Experian’s scores range from 1 to 1000, a score of 700 at Experian means something entirely different to a score of 700 at Equifax. Then to confuse things further, TransUnion’s score ranges from 1 to 710!
Given this it is important to note that just because one score is higher or lower at one provider versus another, it doesn’t mean it’s any better or worse but that the way each institution calculates their score is different.
It’s really important you understand your credit scores across all providers as when you make an application for credit, the lender could use any of the three to assess you.
Pillar is the only service in the UK where you can check all three of your credit scores free of charge! As mentioned above, all of our Pillar credit cards (including the soon to be launched Pillar Build) report your usage to all the three CRAs ensuring you build your credit score across all three firms!