Why is Experian so much lower than FICO?

There are two primary credit-scoring companies:

Experian and FICO, and these companies use different methods to determine the credit scores, and therefore the Experian score may differ greatly from the FICO score.

There are several key reasons for this:

1. They employ different credit scoring models. FICO credit scores are between 300 and 850, and they are derived from credit report information from the three major credit bureaus: Experian, Equifax, and TransUnion. However, the Experian credit score model falls between 330 and 830 and it only takes into account the data contained in your Experian credit report. Therefore, the two scores will consider different credit report information to give you your score.
2. There is more emphasis placed on different components that make up a credit score. Payment history, the amounts owed, and the length of the credit history are used in both FICO and Experian scoring models, but their importance differs. FICO has more focus on payment history and its impact is higher in credit scoring with 35% as compared to the Experian model’s 30%. Past dues also matter more in FICO, which takes about 30 percent of consideration.
3. While other credit scoring companies only consider one credit bureau report, FICO considers all three. Unlike FICO scores, which provide a summary of your credit by obtaining data from your Experian, Equifax, and TransUnion credit reports, Experian scores are based solely on the data in your Experian credit report. Thus, any accounts that you reported only to Equifax or TransUnion would not have any influence on your Experian credit score. This means that more data is provided to FICO scores so that they have a clearer picture of your credit utilization.
4. Other debt amounts may be taken into consideration. This includes the amounts you owe on credit accounts such as loans and credit cards, which is another key score. However, Experian can have different amounts mentioned for your existing debts than the credit bureau has on its report of your credit. This means that FICO and Experian scores can look at how much you owe and come up with different scores. It further illustrates that even minor variances in the reported debts can result in significantly different scores.
5. Some FICO scores even contain data from Experian but not all. FICO does provide scoring models that incorporate data from Experian, but most lenders rely on FICO 8, FICO 9, or FICO Industry Specific Scores based solely on Equifax and TransUnion data. Therefore, if your lender is pulling one of these scores, the data on your Experian report will not affect these FICO models.

• In other words, since Experian and FICO use different algorithms, assign different importance to credit factors, use different credit report data, and consider amounts of debts differently, it is normal for the scores to differ more. It is possible to see a 100+ point difference between a person’s Experian credit score and their FICO score from a different bureau.
• If you find your Experian score is much lower than your FICO score, here are some tips to improve it: If you find your Experian score is much lower than your FICO score, here are some tips to improve it:
• Check the Experian credit report and make corrections to the data that you think is wrong or incomplete. Errors lowered your score.
• Reduce the utilization of credit below the 30% mark on all the cards offered to a consumer. This shows that those with high utilization have lower Experian scores.
• If necessary, this means adding other types of credit to the credit portfolio. This is because having different sources can assist in achieving better Experian scores.
• Keep paying all loan and credit balances in full and on time each month. The credit standing is relevant to Experian’s model.

The difference between your Experian credit score and report and your FICO score means that you can easily identify what is pulling it down when you check it frequently. Fixing any inconsistencies and making more appropriate adjustments to the Experian credit data given the above tips will assist in bringing it closer to your FICO score from the other credit bureaus. However, the above point should be remembered that often a small difference in the points is normal and the scores of the students can vary greatly.

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