Why do I get three different credit scores?

Whenever you, as a borrower, have your credit report run by a mortgage lender you will receive three different scores. Ever wonder why?

There are three different credit bureaus: TransUnion, Equifax and Experian. Each of these credit bureaus is responsible for tracking your credit and giving you your FICO score. Now each of these three credit bureaus has a different method of determining your credit score, which is why you get a slightly different score from each credit bureau.

Generally, the scores that you receive from each of these credit bureaus will be in the same range. But what your bank or mortgage lender will do when running your credit is take your middle score and use that score as a basis for determining your interest rate. If you are applying for a home loan with a spouse or someone else, then the bank is going to take the lowest middle score between the two of you.

Keep in mind that the middle credit score that is used and the interest rate you are quoted are inversely related. So if you have a low credit score, you’ll have a higher interest rate. And vice versa, if you have a high credit score, you’ll get a lower interest rate.