Why Are My Credit Scores So Different?
What does each credit score mean?
We get a great deal of question as to why consumer’s scores are different from what Y2K Credit Solutions provides and a third party reporting like “Credit Karma”.
The short answer is our system uses a different scoring model to provide a score than monitoring services like “Credit Karma”.
The truth is, there are many scoring models and each one will give your bureau a different score. There are models that specialize in credit cards, mortgages and auto. For instance, the most current version of FICO is FICO 8. However, if a lender specializes in auto loans, they would pull a FICO (Auto 8) and not a generic FICO 8.
Vantage 3.0 is the newest scoring model and was created by all three bureaus (Experian, Equifax and TransUnion).
If the information on all three bureaus were the identical, your score using Vantage 3.0 would be identical on all three bureaus. However, many lending institutions have not yet adopted Vantage 3.0, therefore each credit bureau uses a different scoring model leading to the differences in scores.
Company’s like “Credit Karma” uses two different scoring models.
The first is Vantage 3 however the second is Vantage 2. Vantage 2 many say this scoring model is too confusing since the score does not stop at 850 like all the other models. On Vantage 2’s scoring model the range is from 500-990. Thus a score of 750 on Vantage 2 no longer means excellent credit.
All of the models in use are designed to predict the percentage of loans at a given score that will go bad within the next two years. So a person who has never missed a car payment but has a few late payments on a credit card should score higher on an auto-scoring model. The reverse is also true, that person would score lower on a credit-scoring model.
For some people, “Credit Karma” will appear to give a higher score over other website scores while others will experience the reverse.
The truth is all of these models will give you a general idea as to how the banks will view your credit. If your score goes up on one model there is a good chance it will go up on the other models as well.
Give Y2K Credit Solutions a call at (877) 552-1377. Can’t make it to our Garden City (NY) headquarters? Schedule a virtual Skype consultation!