Dear Savvy,

Over the last couple years I've been really working on improving my credit, and in December I bought my first home! It just recently showed up on my report and has definitely increased my score. But my question is, how do the three reporting agencies vary so much? My score ranges from 794 to 645. I've printed out and double checked they have all the same information. How can they be so different? All in all, I'm proud that I've raised it from an average of 518 but the difference between agencies seems a little weird.

Savvy says: First of all, congrats on improving your score and buying a house! A big variance like that in your credit score is frustrating, but not alarming. Find out why the three agencies' calculations are different when you read more.

Creditors submit your information to the reporting agencies, and the compiled details are used to determine your credit rating. While all agencies base their scores on this information, they use different formulas to calculate your credit score. The reporting agencies have proprietary formulas that assign value to different factors, and the inconsistencies between your credit scores is a result of these varied weightings.

It sounds like you're on top of it, but thoroughly reviewing your credit reports on a regular basis will alert you to any discrepancies. Creditors often do not report to all three agencies so your history will vary, but most importantly, staying on top of your report allows you to catch any mistakes that could damage your score.

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