Why Your TransUnion and Equifax Scores Differ- and What Credit Report Errors Have to Do with It

You know what’s confusing to consumers? There are three major credit bureaus creating credit reports with your data and none of the credit scores are coming out the same. Two of the biggest bafflers in this realm are TransUnion and Equifax, leaving consumers confused about why there are credit score differences.

In the TransUnion vs Equifax match up, sometimes these differences are due to propriety variance in the way the credit bureaus process and weigh data. In other words, they have different secret formulas they use. But sometimes these differences are due to credit report errors in one or both reports.

Credit bureau mistakes that cause differences in credit reports and credit scores are something to take seriously. Sometimes the differences are due to credit report errors, so it's worth understanding how they happen, why it matters, and what you can do about it.

Top 3 Reasons Your Credit Scores Are Different (And When It’s a Problem)

There are three main reasons for credit score differences from each of the credit bureaus: different scoring models, inconsistent credit data, and reporting delays.

Different Scoring Models

Not only does each credit bureau have its own way of calculating credit scores, but there are also two different primary scoring models: FICO and VantageScore.

FICO(Fair Isaac Corporation) is the model primarily used by lenders for making all the big lending decisions in your financial life, including mortgage applications.

VantageScore is a credit bureau created scoring model that allows people with a less robust financial history to get a score. It is considered a useful tool to get a very general idea of where your score stands, but it is not typically used by financial institutions as a determinative score.

VantageScore vs FICO weighting differences also exist. So, not only are the scores valued in different ways by financial decision makers, but the scoring models also weigh financial variables in different ways. The variables include things like payment history, credit utilization (how much of your available credit you use), and the age of your accounts. FICO and VantageScore consider these variables as being more or less important in each of their scoring models.

Inconsistent Credit Data Between Bureaus

You see with the scoring models that even if the data is the same, it’s not necessarily crunched into the same score at each credit bureau. But it’s even more complicated because the data isn’t always consistent from one bureau to another.

For instance, any of the credit bureaus can maintain data on you that reflects missing accounts, duplicate accounts, wrong balances, inaccurate payment history, false debt collections, wrong personal data, and more. Credit bureaus reporting errors is a major red flag area and is often actionable under the Fair Credit Reporting Act (FCRA), which means that you may have grounds to bring a lawsuit.            

Reporting Delays and Timing Issues

The consumer data that goes into credit reports can be updated at different times. Depending on when a report is pulled by one of the credit bureaus, these timing differences can lead to data discrepancies and potentially cause problems for the consumer.

The Hidden Danger: Credit Report Errors That Lower Your Score

When looking at the three main drivers of differences between TransUnion and Equifax scores (scoring models, inconsistent data, and reporting delays), this type of data handling (or mishandling) adds up to the potential for a lot of credit report errors.

The most common errors on credit reports are:

1. Wrong payment history: payments showing as unpaid or late
2. Wrong accounts: whether caused by an identity theft credit report showing false accounts in your name due to fraud or a mixed credit report showing false accounts that belong to someone else, these errors are a big problem.
3. Incorrect balances and credit utilization: failing to indicate that a balance has been paid down or paid off, or that a line of credit has been closed in good standing, can make it look like your available credit is maxed out when, in reality, you use it wisely.
4. Duplicate entries: listing the same account, debt, line of credit, mortgage, auto loan, collection account, or anything else more than once can make your credit look twice as crazy as it probably already feels. Yes, decision makers can pick through the entries and try to figure it all out, but they shouldn’t have to and may not even realize they need to.
5. Inaccurate personal data: wrong birthdates, addresses, spellings of your name, etc., can seem minor but still stir up big trouble.

What Lenders Actually See – and Why Errors Matter More Than You Think

Whenever a lender credit check is run, there’s a chance of being denied due to a credit report error. Here’s what happens:

• Lenders may pull your credit report from one or multiple credit bureaus. After reading this article, you understand why they may use more than one (credit data can be all over the map). Looking at Equifax and TransUnion, for instance, may show different things.
• You can’t control which report they look at, unfortunately. So even if you know that your TransUnion credit report consistently looks better than your Equifax credit report, it’s not up to you.
• A single inaccurate report can cost you an approval. Even if you’ve spent 30 years amassing the most amazing credit history imaginable and priding yourself on your outstanding credit score, one inaccurate report can bring your plans down faster than a house of cards in a windstorm.

How to Dispute Credit Report Errors- Two Approaches

When you need to fix credit report mistakes, there are two possible approaches. First, you can handle everything yourself. Second, you can let Mistake.com handle it for you. The steps are similar for either approach, so let’s take a look at where the credit report dispute process differs depending on which approach you choose:

• When you spot an error on one credit report, get a copy of all three credit reports. You can do this for free at annualcreditreport.com. Equifax, Experian, and TransUnion combined to bring this verified site to life so consumers could have easy access.
• Carefully review your credit reports and note any inaccuracies, inconsistencies, misleading data, mixed data, false deceased indicators, wrong personal data, etc. Highlight, underline, circle, draw arrows. Let there be no confusion about which data is incorrect.
• Make a copy of this marked up report, along with a well-drafted dispute letter which clearly explains which information is wrong, why it’s wrong, and what documentation you have that proves it. Include copies of your supporting documents as well.
• Submit your dispute package either through the online dispute portal provided for each credit bureau or through certified mail. Be aware that online dispute portals may require you to waive certain legal rights when you agree to the terms of use, and the confirmation and tracking of your dispute is entirely in their hands. If you send it through certified mail (which we recommend), you’re in control of the confirmation, timing, and tracking.
• A separate dispute must be submitted to each credit bureau if errors are found on your report for that credit bureau. Track the dates, retain copies of the dispute and documentation, and keep the receipts for each dispute sent.
• If 30 days comes and goes and your dispute is ignored, nothing is corrected, you’re told that the information was investigated and verified as accurate, the false info was removed only to return again later, or you’ve suffered harm because of the credit report errors, then it’s time to escalate.
• File a lawsuit for FCRA violations. Seek corrections and compensation.

(Check out our guide to disputing credit report errors in the Guides & How To's section of our Knowledge Center.)

If you approach this process on your own, be careful to document and save everything in case you need it down the road if a lawsuit becomes necessary (which is a frequent occurrence).

If you approach this process using Mistake.com, we handle everything for you. Yep, everything. We take care of the dispute, track the timing, and filing the lawsuit, if needed. We seek corrections and compensation on your behalf, and the credit bureaus pay our legal fees.