Answered: Why is my Experian® score higher than Credit Karma? | Join the Discussion Now (2024)

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Answered: Why is my Experian® score higher than Credit Karma? | Join the Discussion Now? ›

The score you see on Credit Karma is based on the information in your credit reports from Equifax® and TransUnion®. These scores are based on the VantageScore 3.0 model. If you see a higher Experian score, it is most likely because Experian may have information from sources different from TransUnion and Equifax.

This is mainly because of two reasons: For one, lenders may pull your credit from different credit bureaus, whether it is Experian, Equifax or TransUnion. Your score can then differ based on what bureau your credit report is pulled from since they don't all receive the same information about your credit accounts.

Experian vs. Credit Karma: Which is more accurate for your credit score? You may be surprised to know that the simple answer is that both are accurate. Read on to find out what's different between the two companies, how they get your credit score, and why you have more than one credit score to begin with.

When the scores are significantly different across bureaus, it is likely the underlying data in the credit bureaus is different and thus driving that observed score difference.

Credit scores from the three main bureaus (Experian, Equifax, and TransUnion) are considered accurate. The accuracy of the scores depends on the accuracy of the information provided to them by lenders and creditors. You can check your credit report to ensure the information is accurate.

The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.

This is because Credit Karma makes use of another credit scoring model compared to many lenders and possibly does not have access to all the data required to calculate your credit score. Furthermore, credit ratings from various sources can differ due to dissimilarities in the data used for their computation.

If you decide to enroll in both services, keep in mind that the FICO Score based on Experian data is calculated differently than the VantageScores based on TransUnion and Equifax data you'll get from Credit Karma. Your FICO Score may differ from your VantageScores because of those different calculation methods.

They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use.

Although there isn't a bank that exclusively uses Experian, some banks that typically use Experian data more commonly include American Express, Bank of America, and Wells Fargo.

Do banks use Experian or Equifax? ›

Credit card issuers and lenders may use one or more of the three major credit bureaus—Experian, TransUnion and Equifax—to help determine your eligibility for new credit card accounts, loans and more.

The specific reason your Experian score is higher than your TransUnion score will depend on individual factors. Firstly, credit bureaus calculate credit scores differently, meaning they use different credit factor weightings to determine your score.

A true FICO score ranges between 300–850 and gets calculated using only information in a consumer's credit report maintained by the three main credit bureaus— Experian™, Equifax^® and TransUnion^®. To receive a FICO Score, you must have a credit account at least 6 months old and activity during the past 6 months.

Yes. Along with TransUnion and Equifax, Experian is recognized by financial institutions around the world as a safe, authoritative and trustworthy credit reporting agency.

The base FICO^® Scores range from 300 to 850, and a good credit score is between 670 and 739 within that range.

Experian's advantage over FICO is that the information it provides is far more detailed and thorough than a simple number. A pair of borrowers could both have 700 FICO Scores but vastly different credit histories.

They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use. A VantageScore has the same credit score range as FICO, and uses some of the same information as a FICO score.

Many lenders furnish information to all three major credit bureaus, but some may furnish information to just one or two of them. This difference in data results in distinct credit reports with each bureau and can lead to differing credit scores across the bureaus.

Which of the 3 Credit Bureaus Is the Best? Of the three main credit bureaus (Equifax, Experian, and TransUnion), none is considered better than the others. A lender may rely on a report from one bureau or all three bureaus to make its decisions about approving a loan.