Published on Apr. 28, 2025

Author: Nikkita Walker
Source: credit.com

Credit scores play a crucial role in our financial lives, impacting everything from loan approvals to interest rates and even job opportunities in some industries. Your credit score is calculated based off of the information in your credit reports, which are maintained by the three credit bureaus: Equifax, Experian and TransUnion.

If you’ve ever checked your credit score in one place – like your banking app – and compared it to your credit score on Experian – you may have wondered why the scores look different.

In this article we’ll explain why your scores look different (and why they’re all probably correct).

Experian vs. FICO: What Are They?

Experian and FICO are two different kinds of institutions. Like I said above, FICO is a proprietary scoring method developed by the Fair Isaac Corporation. FICO developed the original credit scoring model in 1989. FICO scores are not calculated by a credit bureau itself but by applying the FICO algorithm to the data in your credit report.

Experian is a credit bureau. Experian collects data about your financial data from lenders, credit card issuers, and other data furnishers to generate your credit report.

So in a nutshell, FICO is just the “equation” used to calculate the information that Experian collects to determine your credit score.

Experian provides FICO scores, depending on the service or product being used. This can be a source of confusion: Experian is both a credit bureau and a provider of FICO scores.

Why Scores Can Differ

FICO isn’t the only credit scoring model used to calculate your particular credit score. VantageScore® is a scoring model jointly owned by the three credit bureaus and is often used by lenders and financial apps.

There are many other scoring models out there as well, some are even particular to certain industries or purposes (like a credit scoring model for evaluating someone’s employment, etc.).

This is due to:

• Different scoring models being used in different places
• Different data being available to the scoring system (e.g., one bureau might not have all your accounts)
• Timing of updates—your accounts may report to one bureau before the others

These differences are normal, and you shouldn’t panic if your scores vary slightly between providers.

How is My Credit Score Created?

Like I said above, your credit score is created by using a mathematical formula that analyzes the information in your credit report.

The goal is to predict how likely you are to repay borrowed money on time. While the exact equation they use is proprietary, FICO has revealed the five key factors they use and how much each one typically influences your score:

1. Payment History (35%)

This is the most important part of your FICO score. It looks at whether you’ve paid past credit accounts on time. Late payments, collections, bankruptcies, and foreclosures will hurt your score, while consistent on-time payments help it.

2. Credit Utilization Ratio (30%)

This reflects how much debt you currently have compared to your available credit, also known as credit utilization. Using a large percentage of your available credit—even if you make payments on time—can lower your score. For best results, try to keep your utilization below 30%.

3. Length of Credit History (15%)

FICO considers how long your credit accounts have been active. A longer credit history generally helps your score, especially if it shows a track record of responsible use.

4. Credit Mix (10%)

Having a variety of credit types—such as credit cards, auto loans, student loans, or a mortgage—can boost your score. It shows you can manage different forms of debt responsibly.

5. Hard Inquiries (10%)

Every time a credit check is performed when you applied for new credit hard inquiries (credit checks) have been made when you applied for new credit. Too many in a short time can suggest risk to lenders.

FICO combines all this data—pulled from your credit reports at the major bureaus (Experian, Equifax, and TransUnion)—and runs it through their scoring model to generate a number between 300 and 850. The higher the number, the lower the risk you pose to lenders.

What Credit Score Should I Trust?

When it comes to choosing which credit score to trust, your best bet is to rely on your FICO score. This is the score used by most lenders when evaluating credit applications for things like mortgages, auto loans, and credit cards.

It’s considered the industry standard, making it the most accurate reflection of what a lender will actually see when you apply for credit.

That said, other credit scores—like those provided by Experian or VantageScore—can still be helpful for general monitoring.

These scores often use different algorithms and may weigh factors differently, so while they can give you a sense of your overall credit health and alert you to changes in your report, they aren’t typically the scores lenders use to make final decisions.

If you’re planning a major financial move, it’s a good idea to check your FICO score directly—many credit card issuers now offer it for free, or you can access it through services like myFICO.

Tips for Managing Your Credit Score—No Matter the Model

1. Pay bills on time: Payment history is the biggest factor for most scoring models.
2. Keep credit utilization low: Aim to use less than 30% of your available credit.
3. Don’t open unnecessary new accounts: Too many inquiries can lower your score.
4. Maintain older accounts: Length of credit history adds to your credibility.
5. Check your reports for errors: You can get a free copy of your report from each bureau at AnnualCreditReport.com.

While Experianand FICOoffer different information, both serve as tools to measure your credit health. To be financially prepared, it’s a good idea to monitor both your credit score and copies of your credit report when possible and take proactive steps to keep your credit strong.

After all, in the world of credit, knowledge really is power.