Why Do Lenders Have Different Credit Scores Than Consumers?

Check your FICO score before filling out a loan application.

Before applying for a loan, consumers often pull their own credit scores to evaluate their eligibility to borrow money. You may pull your credit score before your lender does, but that does not guarantee that the credit score you pull will be identical to the one your lender will review.

Facts

Your credit report determines your credit score, but depending upon who you order your credit score from, it may be calculated differently.

Types

When most consumers order their credit score, they order it from either the credit bureaus or a third-party website. They are then provided a consumer credit score. Lenders order FICO scores directly from the Fair Isaac Corporation.

Options

You can order your FICO score directly from the Fair Isaac Corporation by visiting myFICO.com. You can also request that the credit bureaus provide you with a FICO score rather than a consumer credit score.

Considerations

Consumers cannot order their Experian FICO scores, only their FICO scores from TransUnion and Equifax.

Effects

If you are turned down for credit due to your lender receiving a much lower credit score than the consumer credit score you pulled, the Fair Credit Reporting Act gives you the right to request a free copy of your credit report.

References

• SpendonLife.com: Consumer vs. Lender Credit Scores
• Cardreport: The Fair Credit Reporting Act (section 612)

Resources

• myFICO.com
• TransUnion
• Equifax