Why your score varies between agencies

If you've checked your credit score with more than one agency, you've probably noticed the numbers don't match.

Confusing at first glance, but not usually a cause for concern. Here's what's going on behind those different numbers, and how to get your score heading in the right direction.

What a credit reference agency does#

The UK has three main credit reference agencies, or CRAs: Experian, Equifax and TransUnion.

Each holds financial information about people in the UK who use, or have used, credit in the past six years. That covers how you've managed loans and credit cards, along with address links, Electoral Roll records, County Court Judgments and any personal insolvencies.

That information forms your credit report, which is then analysed to produce a credit score. Lenders use reports to decide how much to lend you, how much risk is involved, and what interest rate to offer.

How credit scores work#

Each agency uses its own range:

Broadly, the higher your score, the better your chances of securing finance. A high score tells lenders you've borrowed reliably before, which gives them confidence you'll keep doing so.

Lots of factors feed into the calculation: your credit utilisation ratio, your repayment history, how long you've used credit, and the mix of credit you hold — car finance, mortgages, bank loans, store cards, credit cards.

What counts as "good" varies by lender and by what you're applying for, since each has its own criteria for assessing borrowers.

Three reasons your score differs#

1. They might hold different information#

There's no legal requirement for lenders to give financial information to credit reference agencies. It's entirely up to each bank or lender which agencies they work with, if any.

So your credit report can look slightly different at each agency, depending on who your lenders report to. Different report, different score.

2. They use different scoring models#

Each scoring system weighs things differently. One might place far more emphasis on a one-off missed payment than another does.

3. They update at different times#

Your score can differ simply based on the day you check, and how quickly changes have filtered through.

Updates from banks and other lenders generally take 4 to 6 weeks to reach the credit reference agencies. Each lender reports on its own monthly cycle, and they don't all pick the same date — so one account can refresh weeks before another. Either way, you may need to wait before changes show up.

Does everyone start from the same place?#

If you and a friend both checked for the first time, having never used credit, you'd both start at zero — right?

Not quite. There's no single score everyone begins with. These are the factors that feed in:

• Electoral Roll — are you registered at your current address? This helps lenders validate the name and address details you give on applications.
• Payment history — have you always paid on time for things like credit cards and overdrafts? Consistent on-time repayment shows there's a low risk of you defaulting.
• Credit utilisation — how much of your available limit you spend each month. Using all or most of it regularly can count against you.
• Credit mix — how many different types of credit you hold. Variety shows you handle different kinds of borrowing responsibly.
• Credit age — how long your accounts have been open. A longer history of on-time payments is stronger evidence of reliability.
• Credit applications — lots of applications in a short space of time (each triggering a 'hard search') can hurt your score, because it suggests to lenders you're being declined or leaning heavily on credit.

How much each factor matters depends on the model the agency uses and the information they hold. That's exactly why it's worth checking all three agencies.

Why your score might not be moving#

Checking regularly and seeing the same number each time? A few likely explanations:

• You're expecting quick results. Improving a credit score is a marathon, not a sprint. A couple of good months won't shift it much. Keep a track record of responsible borrowing going and results follow.
• Your information hasn't updated yet. Most lenders send updates once a month, so changes to your accounts or payment habits won't appear instantly. New account information can take anywhere from a few days to six weeks.
• Your credit history is short, or non-existent. If you've only had one account for a few months, your score will take time to rise.
• Your score is already high. Once you're in excellent territory, progress naturally slows. You're doing the right things — keep going.

Worth remembering: lenders look at your whole credit report when assessing an application. Your score gives you a good read on how they see your borrowing history, but it isn't the be-all and end-all. Before applying for anything, check the report itself is correct and up to date.

So which report is the accurate one?#

None of them is more accurate than the others. They simply organise the data and calculate the score in different ways.

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

If you do spot an error, you can raise it with the lender reporting it or directly with the agency. Whichever route you take, the agency has 28 days under law to respond.

As a rule of thumb: if a company's name is attached to an entry on your report, responsibility for that entry usually sits with them. Credit reference agencies aren't allowed to edit that data without the company's permission. They work together, but it generally helps to contact the lender first.

The key things to remember#

• Your score will almost certainly differ across Experian, Equifax and TransUnion, and that's normal.
• The three causes are different data held, different scoring models, and different update timings.
• Lenders aren't legally required to report to any agency, let alone all three.
• Updates usually take 4 to 6 weeks, and each lender reports on its own monthly cycle.
• No agency's report is more accurate than another's.
• Report errors to the lender first, since the agency can't change their data without permission.
• Checking your own report regularly is how you keep it accurate.