Why is my credit score different on different sites?

If you’ve checked your credit score with multiple agencies, you might notice that the numbers aren’t the same.

While these differences may be confusing at first, they aren’t usually cause for concern. Let’s taker a closer look at why your credit score changes between websites.

We’ll help you understand how credit reference agencies work, shine a light on the information used to calculate your credit score, and uncover how to get your credit score heading in the right direction.

What is a credit reference agency?

The three main credit reference agencies (CRAs) in the UK are Experian, Equifax, and TransUnion.

Each holds financial information about individuals in the UK who use, or have used, credit in the past six years. This includes things like how you’ve managed credit (such as loans or credit cards) as well as address links, Electoral Roll records, County Court Judgments, and any personal insolvencies.

This information forms your credit report which is then analysed to create a credit score. Credit reports help lenders decide how much to loan you, how much risk there is in doing so, and what interest rates to give you.

How do credit scores work?

Credit scores are a number, usually ranging somewhere between 0 and 1,000.

For Experian, scores range between 0 and 999. For Equifax it’s 0 to 1,000, and TransUnion scores range from 0 to 710.

Here at Checkmyfile, our score ranges from 0 to 1,000.

Generally speaking, the higher your score, the better your chances of securing personal finance. This is because a high credit score suggests to lenders that you’ve borrowed reliably in the past, giving confidence you’re likely to carry on in the future.

There are lots of different factors that companies use to calculate your credit score. This can include your credit utilisation ratio, repayment history, how long you’ve used credit, and the ‘mix’ of credit you use (such as car finance, mortgages, bank loans, store cards or credit cards).

A ‘good’ credit score differs depending on the lender and what you’re applying for. They each have their own criteria for assessing potential borrowers. But understanding your credit score and keeping a close eye on changes is one of the first steps to building an excellent rating.

Why does my credit score differ between agencies?

There are a few potential reasons for this. Chances are, you’ll probably have a different score on Experian, Equifax, and TransUnion – but this usually anything to worry about. Here’s why:

1. Different companies might hold different information

There’s no legal requirement for lenders to provide financial information to credit reference agencies. It’s completely up to individual banks and lenders which CRAs they work with (if any).

Because of this, the information on your credit report might be slightly different across each credit reference agency, based on which of the agencies your lenders choose to report to. And if your credit report is different, your resulting credit score will likely be different too.

2. Different companies have different credit rating models

Each credit scoring system will vary the weight of different aspects of your history. For example, the scoring system used by one company might put more emphasis on one off missed payments than another.

3. Companies update information at different times

Your credit score might be different across different agencies depending on the day you check and how quickly changes appear on their credit reports to be reflected in the scores.

Updates from banks and other lenders generally take 4 to 6 weeks to feed through to credit reference agencies. Some lenders have daily refreshes though, meaning information will show up a lot sooner. So you may need to wait a while before you see changes to your credit score.

Does everyone start with the same credit score?

Say you and a friend check your credit score for the very first time. If neither of you have used credit before, surely you’d both start at zero?

Well, not exactly.

There isn’t a single credit score each person starts with. Here are some of the factors that can go into calculating credit scores:

• Electoral Roll: Are you registered on the Electoral Roll at your current address? This helps lenders validate the name and address details you provide on your credit applications.

• Payment history: Have you always paid on time for things like credit cards or overdrafts? By consistently making repayments on time, you show that you can repay credit reliably, meaning there’s a low risk of defaulting.

• Credit utilisation: How much money do you have to pay off across all your accounts? The amount of your available credit limit that you spend each month can impact your credit score. Using all, or most of, your limit every month can have a negative impact on your credit score.

• Credit mix: How many different types of credit do you have? This could be credit cards, car finance, loans, mortgages, etc. Having a variety of credit accounts can show you handle different kinds of credit responsibly.

• Credit age: How long have your accounts been open? A longer history (with payments consistently made on time) can demonstrate more evidence of reliable borrowing. This should have a positive impact on your credit score.

• Credit applications: If you’ve made lots of applications for credit in a short amount of time (triggering what’s known as a ‘hard search’), this can impact your score. This is because multiple credit applications in a short timeframe can give lenders the impression that you’re being declined or you’re relying heavily on credit – lenders may see this as high risk.

How each of these factors impacts your credit score depends on the credit scoring model used by each company and the information they hold. Which is why your Checkmyfile credit report includes information from all three main credit reference agencies – Experian, Equifax, and TransUnion – in one place. It’s the most detailed credit report you can get.

Why does my credit score stay the same?

No matter what credit score you start with, understanding why it changes is the first step to making that number grow.

So if you’re regularly checking your credit score and it seems stuck in the same place… why is this? Here are a few possible reasons:

• You’re expecting quick results: improving your credit score is a marathon, not a sprint. Even if you’ve had a couple of months getting everything in order, your score is unlikely to immediately go up. Keep up a track record of responsible borrowing over the long term, and you should see results.

• Your information hasn’t been updated: most lenders send credit updates once a month. So if you’ve made changes to your accounts or the way you pay, this might not show up instantly. New account information can take anything from a few days to six weeks to show up on your credit report.

• You’ve got a short (or no) credit history: it takes time to build a great credit score. If you don’t have much lending history (for instance, you’ve only had one account for a matter of months), your credit score will likely take some time to rise.

• You’ve already got a high credit score: if you’ve made great progress increasing your credit score (and you’ve already got an excellent rating), then it might start rising more slowly. You’re doing all the right things, just keep going.

Note: Lenders look at your whole credit report when they’re assessing a credit application. Your credit score gives you great insights into how lenders view your borrowing history, but it’s not the be-all and end-all. If you’re applying for any kind of credit, checking your credit report is correct and up to date is an important step.

Which credit report is most accurate?

If credit scores change between companies, is one more accurate than the other? In short, no. They just have different ways of organising the credit report data and calculating your credit score.

All credit reference agencies in the UK are authorised and held to high standards by the Financial Conduct Authority (FCA).

If you do spot errors on your credit report, you can raise this with the lender reporting it or directly with the credit reference agency. At Checkmyfile, we also provide a dispute resolution service, so if you have any questions - just ask.

As a rule of thumb, if you see the name of a company (i.e. Bank X) linked to any information on your credit report, the responsibility for the entry usually sits with them. The credit reference agencies aren’t allowed to edit this data without the company’s permission. So although they’ll work together, it often helps if customers contact lenders about any errors first.

Note: Regularly checking your credit report helps ensure all the information is accurate. This way, you’ll stay on top of your credit score and any errors you spot can be corrected as quickly as possible.

To recap:

Your credit score will probably differ between the three main credit reference agencies (Experian, Equifax, and TransUnion). But this isn’t normally anything to worry about. It could be down to many factors, including differing information held by each agency, the speed of updates, and different credit scoring models.

Although credit reports (and the resulting credit scores) might differ, they’re still accurate. If you do spot any errors on your report, you can get in touch with either your lender or the credit reference agency.

Know your file

Whatever your number, whatever your goal, the first step towards growing is knowing. With Checkmyfile you get the most detailed credit report on offer. Captured in one convenient spot. Check your file