Ex TransUnion VP Reveals the Credit Score Deception Behind 200-Point Swings
Three takeaways from this week’s podcast:
- Different models, versions, and data create different credit scores, so a 40 point spread is normal and sometimes much larger.
- Lenders choose the score that best predicts risk for their portfolio, and some use custom scores you will never see.
- Track trends, check your data at all three bureaus, and get the lender’s score before a big application.
In this episode, I talk with Matt Komos of OGMA Risk and Analytics about why Credit Karma, FICO 10, and VantageScore 4 can show very different numbers on the same day. We unpack model versions, bureau data gaps, lender choices, and how trended data in newer scores changes the game. If you have ever seen three scores that do not match, this conversation explains why and what to do next.
Frequently Asked Questions
- Why are my Credit Karma and lender scores different?
- What are FICO 10 and VantageScore 4, and why do they matter?
- Which score actually matters when I apply for credit?
- Are FICO and VantageScore on different scales?
- Can a lender use a custom score I cannot see?
- Why do my three bureau scores differ on the same day?
- How can I preview the score that will be used for my application?
- What is trended data and why do newer scores use it?
- If I get denied, should I take it personally or try another lender?
- What one rule would make credit scoring fairer for consumers?
- What is the simplest way to improve across all scoring models?
FAQ: Why are my Credit Karma and lender scores different?
They are different because Credit Karma typically shows a VantageScore, while many lenders use a FICO version, and each model weighs data differently and may come from different bureaus. The model version the lender selects can also be older or newer than the one you see online, which shifts the number even if nothing in your file changed.
Think of consumer scores as directional and educational. Use them for trend lines. For decisions, plan around the specific score your lender uses and the data in your reports.
FAQ: What are FICO 10 and VantageScore 4, and why do they matter?
FICO 10 and VantageScore 4 are newer model generations that incorporate more recent data science and, in some cases, trended data. They often predict risk better for lenders, which is why you may see a different result when a bank upgrades from an older version.
When models improve, cutoffs and sensitivity can change. That can help or hurt depending on your recent behavior, utilization patterns, and account mix.
FAQ: Which score actually matters when I apply for credit?
The score that matters is the one your lender pulls for that product on that day. Different lenders choose different models and versions based on their portfolio results.
Before a major application, ask which model and bureau they use. Then check that specific report and focus your prep there.
FAQ: Are FICO and VantageScore on different scales?
Yes, FICO commonly tops out at 850 and many VantageScore versions top out at 850 or 900 depending on version. You cannot convert a 750 FICO to a VantageScore equivalent, and companies are not allowed to provide a direct conversion.
Treat each score within its own scale. Do not translate between brands or versions.
FAQ: Can a lender use a custom score I cannot see?
Yes, many lenders build custom scores using bureau data, cash flow, or other signals. These scores are tailored to their applicant base and are not available to consumers.
If a denial cites an internal score, focus on the adverse action reasons. Those reasons tell you what to improve, even if the number itself is opaque.
FAQ: Why do my three bureau scores differ on the same day?
They differ because the underlying reports can be different. A creditor might report to one or two bureaus but not all three, or report on different schedules. Missing or stale data changes the input, which changes the score.
Start by aligning the data. Pull all three reports and fix errors or gaps so each bureau reflects the same information.
FAQ: How can I preview the score that will be used for my application?
The best preview is to ask the lender which model and bureau they use, then obtain that bureau’s report and score near the time you apply. AnnualCreditReport gives free report access and many banks let you view a FICO tied to a specific bureau.
If you cannot get that exact score, use your consumer score for trends and focus on the known drivers like utilization, on time history, and recent inquiries.
FAQ: What is trended data and why do newer scores use it?
Trended data looks at your patterns over time, such as whether balances are rising or falling and how you manage revolving credit month to month. FICO 10T and VantageScore 4 use trended data to reward sustained positive behavior and to spot risk earlier.
This reduces the weight of a single snapshot and can produce more stable decisions, especially if you have been steadily improving.
FAQ: If I get denied, should I take it personally or try another lender?
You should view a denial as feedback on that lender’s model and risk appetite, not as a verdict on your worth. Another lender using a different model or cutoffs may approve the same profile.
Use the adverse action reasons to tune your next move. Lower utilization, clean up errors, and try a lender that uses a score aligned to your strengths.
FAQ: What one rule would make credit scoring fairer for consumers?
A rule that requires equal data reporting to all three bureaus would make scoring fairer. Uneven reporting creates differences that consumers cannot see or control.
Level data plus modern trended models would bring scores closer together and reduce surprises at the point of credit.
FAQ: What is the simplest way to improve across all scoring models?
The simplest way is to attack the shared drivers. Pay on time every month, keep revolving utilization low, avoid unnecessary new accounts, and let positive history age.
These habits move most models in the right direction. Pair them with regular three bureau checks so data stays accurate and complete.
