Why are my credit reports different?

The three credit reporting agencies, Equifax, Experian and TransUnion, compile information from many different sources such as lenders, collection agencies and court records.  The lenders come from many industries such as credit card, banking, credit unions, oil, retail, mortgage lenders, student loan lenders and auto lenders. There are several reasons for the differences in the credit reports at each of the three bureaus.

Lenders report information at different times

The creditors which include credit card issuers (banks, retailers and oil) and lenders (auto, mortgage and student loans) send their accounts receivable data to the credit bureaus. Most national companies have so many accounts, that it takes an entire month to complete one monthly cycle.  They send this data several times a month to the credit bureaus, but it may not be the same date to each bureau.  In addition, the credit bureaus, may process the data at different times, based upon their schedule.  Therefore, the date this information is reported at each bureau may not be the same.  Information sent and/or received at the end of the month, could be a month off from another bureau.

If you order your credit report from all three bureaus at the same time you will not show accounts updated on the same date or even the same month.  For example, it may show a bank card updated in February 2013 at one bureau and the last update was in January 2013 for another.

Not all have the same information

The national creditors all report to the credit bureaus, but there are some local or regional lenders that may not do so.  Some do not see the need to report to all three.  This could be a regional retailer, finance company, local bank or credit union.

There can be differences in how public records are collected. Bankruptcies are usually reported to all three, but there can be differences in how tax liens and judgments are collected by the agencies.

Inquiries are not the same

When you apply for credit, an inquiry is posted on your credit report when the company reviews your credit report. The creditor purchases a credit report from only one of the three credit reporting agencies, becomes it becomes too costly to make the decision otherwise.  The exception is mortgage lenders, which review reports from all three credit bureaus.

If you compare your credit report from the three bureaus, you will probably find some differences.  Some can make a difference on your credit and others will not. A credit card account that has a substantially higher balance than that reported at the other bureaus can have a negative impact on your score. Negative data such as public record data, which is only listed at one credit bureau, can have a major impact.  Inquiries will not be the same at all three, but don’t have a major impact on your credit score.

Credit Reporting Expert, John Ulzheimer, is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, founder of www.creditexpertwitness.com and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  You can follow John on Twitter here.