topic Re: On average which Credit Reporting Agency usually has the lowest score? in Understanding FICO® Scoring

On average which Credit Reporting Agency usually has the lowest score?

Anonymous — Wed, 26 Aug 2009 20:10:18 GMT

Since TU and EQ are the only two scores we can get access to on our own, does anybody know if on average which one of the three usually scores the lowest? I've noticed that TU has much more detail on my report so I was just wondering if TU would usually be the one. Thanks!

Re: On average which Credit Reporting Agency usually has the lowest score?

Lel — Wed, 26 Aug 2009 20:30:56 GMT

Speaking only for myself, my TU score has been consistently at 20-30 points lower than my EQ.

Re: On average which Credit Reporting Agency usually has the lowest score?

marty56 — Wed, 26 Aug 2009 22:22:14 GMT

I am in the major derog score group so EQ smacks me the hardest.

Re: On average which Credit Reporting Agency usually has the lowest score?

smallfry — Wed, 26 Aug 2009 23:06:21 GMT

3 years ago when all 3 of my reports were nearly identical EX was 8 points lower than EQ and TU.

Re: On average which Credit Reporting Agency usually has the lowest score?

MattH — Thu, 27 Aug 2009 12:25:52 GMT

@Anonymous wrote:
Since TU and EQ are the only two scores we can get access to on our own, does anybody know if on average which one of the three usually scores the lowest? I've noticed that TU has much more detail on my report so I was just wondering if TU would usually be the one. Thanks!

There is no universal rule.

According to various whitepapers on Fair Isaac's site, their statisticians work hard to ensure that all versions of their scoring algorith have the same distribution of scores; this is extremely important to lenders who want to know that if they impose a cutoff score of X that will equal Y percent of the population. However, each version weighs various factors differently.

Think of several professors teaching sections of the same undergraduate class at a college or university. Having taught at that level myself I can assure you that no matter how hard we tried to be fair and consistent no two evaluators will agree all the time. So what we usually did was agree on our grading curve: X percent would get A, Y percent would get B, etc., because we knew it would not be fair to the students if one of us was a much harder or easier grader than the others! But making sure we gave out comparable percentages of A grades did not mean, could never mean, that every student to whom I gave an A would have been given that grade by another instructor.

Based on various comments I read here when we could get all three, and on my own experience when I could get all three, I believe the main difference among the CRAs for those with clean histories is how they weight (1) percentage utilization on revolving debt, (2) total amount owed on revolving accounts, and (3) number of accounts reporting a balance. For example my wife and I both have well-paying jobs, we use very little cash, and our credit cards have high limits. So at the end of some months we might briefly owe more than a thousand dollars on every card, which we always pay in full. As a percentage of our limits this looks very small, but as a total amount it looks moderately large. Now the rest of my history is such that even with this quirk my scores always come out over 780 so I'm not to worried about this. But before the next time my wife and I plan to apply for something, for a couple months in advance I'm gonna prepay those credit cards in order to make sure all my scores will be over 800. In my own case, whenever I could see my EX it was my highest, so if I get both the others above 800 then I can be confident all three are, but for somebody else that might not be the case.

Re: On average which Credit Reporting Agency usually has the lowest score?

Anonymous — Thu, 27 Aug 2009 19:13:37 GMT

Each of the scoring models and CRB implementations thereof place a diffent emphasis on certain factors. Depending on where you are weak (or strong) your lowest score can be on a different CRB.

In my case TU is my highest (and has been), TX is second highest. EQ brings up the rear. EQ does not like baddies and two still report there. There is nothing I can do about it. (Scores 700 - 735)

Re: On average which Credit Reporting Agency usually has the lowest score?

haulingthescoreup — Thu, 27 Aug 2009 23:22:56 GMT

When I had a 90-day late (serious derog), EQ was nearly 30 points lower than TU and presumably EX. (My TU and EX always matched pretty well.)

Once WFNNB removed the 90, and all the other lates on the account, EQ is now nearly the same as TU.

EQ hates lates, period.

Re: On average which Credit Reporting Agency usually has the lowest score?

Anonymous — Fri, 28 Aug 2009 00:04:17 GMT

My EQ and TU are within two points of each other, and the only difference between them is that TU still reports +30 TLs ('too many accounts' ding) while EQ has dropped down to about 23 TLs. Those would be closed/paid student loan accounts that EQ has dropped, for the most part.

Re: On average which Credit Reporting Agency usually has the lowest score?

marty56 — Fri, 28 Aug 2009 00:16:01 GMT

@haulingthescoreup wrote:
EQ hates lates, period.

Not as much as I do. If I could only squeeze 1 more point out of EQ and then they would not ding me 3 points for 0% CC util.

Re: On average which Credit Reporting Agency usually has the lowest score?

Anonymous — Fri, 28 Aug 2009 02:57:02 GMT

Experian has always been my lowest. 20-30 points less than the other two. TU likes me the best. All three reports have the same info reporting. TU and EQ are usually within 5 points of each other for me.

Re: On average which Credit Reporting Agency usually has the lowest score?

Anonymous — Fri, 28 Aug 2009 03:01:05 GMT

I wish my EQ was within 4 points of my TU. **bleep** Baddies!

Re: On average which Credit Reporting Agency usually has the lowest score?

fused — Fri, 28 Aug 2009 04:04:37 GMT

For the longest time, TU was my highest FICO score. However, once I reached the 800+ club with all three CRAs, TU became my lowest.

My FICOs: EQ 812 TU 807, EX 811 (2/09)

Re: On average which Credit Reporting Agency usually has the lowest score?

CreditDrama85 — Fri, 28 Aug 2009 13:24:36 GMT

EQ is always the lowest for me. it is usually a minimum of 30 points lower that EX and TU and i have seen it as much as 90 points lower.

Re: On average which Credit Reporting Agency usually has the lowest score?

Anonymous — Mon, 31 Aug 2009 21:20:47 GMT

Just discovered that my EQ score is 75 points higher than TU. Difference seemd to be TU shows 42% usage EX shows 1%. Difference is in how they catagorize home equity LOC. TU calls it overdraft/reserve checking account (totally wrong) and EQ call it Revolving.

Any suggestions?

Re: On average which Credit Reporting Agency usually has the lowest score?

Jazzzy — Tue, 01 Sep 2009 04:07:07 GMT

@Anonymous wrote:
Just discovered that my EQ score is 75 points higher than TU. Difference seemd to be TU shows 42% usage EX shows 1%. Difference is in how they catagorize home equity LOC. TU calls it overdraft/reserve checking account (totally wrong) and EQ call it Revolving.

Any suggestions?

TU considers our HELOC to be "overdraft/resere checking" as well....but I don't think that negatively affects our TU score.

How do you think it negatively affects the score?

Re: On average which Credit Reporting Agency usually has the lowest score?

Anonymous — Tue, 01 Sep 2009 13:34:15 GMT

All info is nearly identical in the two reports. Only difference is that TU shows 42% usage and EX shows 1%. Only item large enough to account for the difference is HELOC.

Re: On average which Credit Reporting Agency usually has the lowest score?

Jazzzy — Tue, 01 Sep 2009 18:21:05 GMT

@Anonymous wrote:
All info is nearly identical in the two reports. Only difference is that TU shows 42% usage and EX shows 1%. Only item large enough to account for the difference is HELOC.

My HELOC that is shown as "Overdraft/Reserve Checking" is not counted into my utility. My HELOC amount is over $150K, and from what I've read on these boards, the size of the HELOC affects how it is reported by some of the CRAs. I understand that smaller HELOCs are counted into utility and larger ones aren't.

Re: On average which Credit Reporting Agency usually has the lowest score?

Anonymous — Tue, 01 Sep 2009 21:20:03 GMT

@LynetteM wrote:
@Anonymous wrote:
All info is nearly identical in the two reports. Only difference is that TU shows 42% usage and EX shows 1%. Only item large enough to account for the difference is HELOC.

My HELOC that is shown as "Overdraft/Reserve Checking" is not counted into my utility. My HELOC amount is over $150K, and from what I've read on these boards, the size of the HELOC affects how it is reported by some of the CRAs. I understand that smaller HELOCs are counted into utility and larger ones aren't.

Yup. Very large revolving line of credit are not included in the UTIL calc. Exactly where that line is is a bit unclear. I think we figured out it is north of $30K. However, if you have a HELOC of $30K with a $25K balance on it it's gonna play havoc with your UTIL! If there is something regarding the treatment of large HELOC's that varies between scoring models that could explain why TU is so much different.

hoyaman - What is the exact status of the HELOC: balance/limit?

Message Edited by creditwherecreditisdue on 09-01-2009 05:20 PM

Re: On average which Credit Reporting Agency usually has the lowest score?

Anonymous — Tue, 01 Sep 2009 21:26:59 GMT

HELOC $50k. Balance is $38k. TU 42% Util. EQ 1% Util.

Re: On average which Credit Reporting Agency usually has the lowest score?

Anonymous — Tue, 01 Sep 2009 21:44:53 GMT

@Anonymous wrote:
HELOC $50k. Balance is $38k. TU 42% Util. EQ 1% Util.

So your 76% UTIL on the HELOC is being treated differently between TU and EQ. (Try to run the calc yourself using the data on each of the CBR's - include the HELOC with the TU data and exclude it with the EQ data.) Those two FICO scores are based on different scoring models. That could be a factor.