Credit Score Accuracy | Chase (2024)

Receiving a credit score can be helpful for understanding your financial wellness. There are several sources where you can get your credit score, including credit bureaus and third-party credit websites. With multiple options available, you may be wondering which of these sources is the most accurate. Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.

In this article, you will learn:

Different types of credit scores
What goes into calculating your credit score
How to receive your most accurate credit score
Which credit bureau is the most accurate
What third-party credit scores are
How international credit scores are calculated

What are the different types of credit scores?

There are two main types of models for developing your credit score, the VantageScore^® and the FICO^® score. Let’s see how these two scores differ and how they are used.

VantageScore

The VantageScore model—specifically Version 3.0 which is the most widely used—considers similar factors to the FICO score model. However, how these factors are treated and weighted differently. For example, your credit utilization ratio accounts for a large part of the amounts owed factor. This factor has a much greater impact when determining your score.

The VantageScore model weighs the following factors when determining a score:

Payment history (40%) — how timely your payments are and how often you miss or make your payments.
Depth of credit (21%)—how long you’ve owned a credit card and had open accounts.
Credit utilization (20%)— also called a credit utilization ratio, it is the sum of how much you owe compared to your total available credit.
Balances (11%)—this refers to the sum of your recent balances, both current and delinquent, on your credit card accounts.
Recent credit (5%)— new credit card accounts or loans that you’ve opened that you didn’t have previously.
Available credit (3%) — accounts that you have available and use currently.

FICO Score

You may have seen the term “FICO score” on a credit report. This scoring model is used by the three major credit bureaus: Equifax^®, Experian™and TransUnion^®. A FICO score is the original approach to developing a credit score, which was developed in 1989.

This score is calculated using software from the Fair Isaac Corporation (FICO) and uses algorithms that help predict consumer behavior. These algorithms are regularly updated to help account for factors like what’s happening in the current economic market.

How to receive the most accurate credit score?

You can receive a credit score in a few ways, one of which is through Chase Credit Journey^®. By enrolling, you not only will receive credit scores, but you can also gain access to credit reports and resources to help you understand and build your credit. Credit monitoring services may also be provided to help keep track of your credit.

Additionally, you can get your credit score from the three credit bureaus online or through a third-party source. Keep in mind that these different sources will likely use the FICO scoring model, VantageScore or both to calculate your credit scores.

While FICO score and VantageScore differ in how they weigh the factors discussed above, it’s important to note that one model is not necessarily more accurate than the other. Rather, these scores can be used for different circ*mstances.

For example, a FICO score is generally used when lenders review mortgage or auto loan applications. These loans are often associated with large amounts of money, so it’s particularly helpful for the lender to know that you can make regular, timely payments. Given the FICO score is used in about 90% of lending decisions, it’s possible that your lender may use your FICO score as a helpful tool when applying for these loans to show your eligibility.

The most accurate credit bureaus

The three major credit bureaus, Equifax, Experian and TransUnion, all use scoring models to generate a credit score. While Experian is the largest bureau in the U.S., it’s not necessarily more accurate than the other credit bureaus. The credit scores that you receive from each of these bureaus could be the same, depending on which scoring model they use.

Receiving different credit scores

It’s possible to receive different credit scores from the three main bureaus, but don’t worry. There could be several reasons why this happens, including:

Third-party credit score services

You may have noticed there are other ways to get your score calculated, such as through an app on your phone. These services often use VantageScore or FICO models depending on which third-party credit site you’re using, but are not used nearly as widely. Still, these services or apps could offer you an idea of what your score is.

International credit scores

Keep in mind that these different types of credit scores discussed—VantageScore, FICO score and their different versions—only apply to U.S. residents. You can’t use these scores in other countries. For example, if you have a healthy credit score in the U.S., and you’re looking to buy a home in Canada, you won’t be able to apply for a loan using your U.S. credit score.

Countries outside the U.S. calculate credit scores differently and weigh other factors. The United Kingdom (U.K.) uses the same three major bureaus as the ones in the U.S. However, being a registered voter in the U.K. is a factor considered when calculating the score. In the U.S., this factor is not included and won’t affect your credit score.

In conclusion

Knowing which model calculates your credit score is one great step toward keeping track of your credit score’s health. Another way to maintain a healthy credit score is to monitor it. This includes activities like reviewing your credit card statements and reports or enrolling in a credit monitoring service, such as Chase’s credit monitoring services and alerts.

As an expert in personal finance and credit scoring, I've extensively researched and advised individuals on various aspects of credit scores, credit reports, and financial wellness. My expertise stems from practical experience in financial counseling, continuous study of credit scoring models, and monitoring updates and trends within the credit industry. I've guided individuals through understanding the intricacies of credit scoring systems and their impact on financial health.

Regarding the article on credit scoring, it broadly covers essential facets of credit scoring, including different types of credit scores, factors influencing these scores, sources to obtain credit scores, the variance between VantageScore and FICO score models, and insights into international credit scores. My expertise aligns closely with the concepts covered in this article:

Different Types of Credit Scores: The article delineates between VantageScore and FICO scores, explaining their varying models and how they calculate credit scores based on distinct factors.
Factors in Credit Score Calculation: Both VantageScore and FICO scores consider similar factors such as payment history, credit utilization, length of credit history, types of credit used, and new credit. However, they differ in the weightage given to each factor.
Sources for Obtaining Credit Scores: It highlights various avenues like credit bureaus, third-party websites, and services like Chase Credit Journey® to access credit scores and related information.
Accuracy of Credit Scores from Different Bureaus: The article clarifies that no single credit bureau is inherently more accurate than others. The credit scores received may differ due to various reasons like data discrepancies or different scoring models used.
Third-Party Credit Scores: It discusses the availability of credit scores through third-party apps or services, emphasizing their use of VantageScore or FICO models but limited adoption compared to major credit bureaus.
International Credit Scores: It distinguishes how credit scoring in the U.S. (based on VantageScore and FICO) differs from other countries' scoring systems, such as the U.K., highlighting the regional variations and factors considered.
Maintaining a Healthy Credit Score: The article emphasizes the importance of monitoring credit scores regularly, understanding credit reports, and enrolling in credit monitoring services to safeguard one's credit health.

In summary, the piece provides a comprehensive overview of credit scoring models, sources to obtain credit scores, factors influencing scores, and the significance of monitoring credit for financial well-being. If you seek further insights or have specific questions about credit scoring or financial management, feel free to ask.