Which Credit Score Do Lenders Use?

We all know it can be tough to achieve 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 main credit scores offered by each of the 3 major credit bureaus, including Equifax, Experian, and TransUnion.

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 TransUnion may have failed to report the derogatory account entirely.

(Why credit scores are different.)

As a result, your credit score with Equifax could be 675, while your credit score over at TransUnion could still be a rather excellent 750.

Which Credit Score Do They Use?

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

Generally, a prospective creditor will only pull a single credit score from one of the major bureaus mentioned above. After all, it’s cheaper to pull just one credit score as opposed to two or three, and they usually rely on one company of their choice.

Unfortunately, knowing which one they’re going to use is a bit of a mystery.  For this reason, it’s imperative that you’re in good standing with each credit bureau to avoid any uncertainty.

Also keep in mind that your credit scores will probably be slightly different than what you may see if you order a consumer credit report or free credit score on your own, or if you use a service such as Credit Sesame or Credit Karma.

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?

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. On top of that, mortgage lenders rely on tri-merge credit reports, which contain all three of the major credit scores.

And because they can’t use all three, they take the middle score. So if you’ve got a 750, 680, and 660 credit score, they would use the 680 credit score, which is a below average credit score. Again, this illustrates the importance of having a good credit score, no matter which company is being used.

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

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 your credit with.

Remember, if you practice healthy credit habits, like making on-time payments and keeping balances low, it won’t matter which credit score lenders use, so don’t fret.

Read more: How to raise your credit score.