Which Credit Score Do Lenders Use?

We all know it can be tough to obtain and maintain a healthy credit score, but the task becomes much more difficult knowing that there are numerous credit scores out there.

For simplicity sake, there are three major credit scores offered by the top credit bureaus, including Equifax, Experian, and Trans Union.

These credit scores can range greatly, depending on what information each bureau has compiled about you.

For instance, Equifax may know that you were late on a credit card payment two months ago, while Trans Union may have failed to report the derogatory account.

As a result, your credit score with Equifax could be 675, while your score over at Trans Union could still be 750.

So, “which credit score do lenders use” anyways?  Well, the answer to this common question is a difficult one, and for that reason, you need to stay on top of credit so you’re golden no matter what score is used.

If you apply for a mortgage, a certain credit scoring formula not available to the public may be used by the issuing bank or lender.

As a result, your credit scores will likely be slightly different than what you may have seen if you ordered a consumer credit report.

While the numbers may not be far off, it’s important to understand that there will typically be some variation, so don’t be surprised if the lender’s credit report differs from yours.

So if there are three credit scores on my credit report, which one do the lenders use?

Well, because they can’t use all three, they take the middle score, so if you’ve got a 750, 680, and 660, they would use the 680 score.

If you only have two credit scores, which can happen from time to time on a light credit file, they’ll use the lower of the two credit scores.

And sometimes a lender, such as an auto financing company, will pull just a single credit score from the bureau of their choice.

This is why it’s important to ensure your information is accurate and up-to-date with all the credit bureaus, as you won’t know who a certain bank or lender may choose to run credit with.

Remember, if you practice healthy credit habits, it won’t matter which credit score lenders use, so don’t fret.

Related Topics:

1. All Three Credit Scores Matter
2. Contacting the Credit Bureaus
3. Fico Loses Trademark on 300-850 Credit Score Range
4. Credit Bureaus
5. Experian Based Fico Score No Longer Available