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What’s throwing you for a loop is the score itself.

How can it be so different between all the places you’re checking — your bank, Credit Karma, Equifax, TransUnion?

If the lowest of these scores was taken into account when applying for your mortgage, you might actually be declined!

Scores from one credit bureau can be different from the one a lender sees

Each bureau ( and are the main ones) collects and updates information independently.

That means there can be different data reported to the credit bureaus, and not all lenders report to both.

A credit card might show on Equifax but not TransUnion (or vice versa). The timing of updates and reporting to the bureaus can also differ. For example, a balance paid yesterday may show on one report, but not yet on the other.

Even when both bureaus have the same data, they apply different evaluation models and algorithms to people’s scores.

This is also the case with easily accessible consumer facing reports through , and .

These different scoring models can shift score results more than you’d think

Equifax’s Canadian model runs from 300 to 900, while TransUnion also uses 300 to 900, but weights things differently (e.g. utilization versus inquiries).

And this might play out with a consumer scoring 740 on Equifax and 680 on TransUnion due to weighting. That differential does make a difference in what kind of loan offer a lender would make to you.

Because lenders and banks often use industry specific FICO scores (about 90 per cent of lenders use FICO) and layer in their own modelling, which emphasizes different risk factors like car loan payment history (a car loan lender would weight this more heavily) or total debt service ratio (a mortgage lender would scrutinize this factor) the score shown in your Credit Karma app could differ by 20 to 50 points from what a lender sees.

Generally these differentials won’t make a huge difference, but when applying for something major like a mortgage or car loan, they matter.

It might not mean a full decline, but it could mean the difference between getting prime rates versus subprime rates.

If you’re not happy with the score or a suboptimal lending offer, focus on underlying behaviours (paying on time, keeping utilization under 30 per cent, avoiding excessive inquiries, paying down large costly balances, and avoiding “maxing out”) to improve your score.

There are situations where you should pay for a full credit report.

In Canada you can, and should, request a free full credit report by mail once a year from each bureau, and a free online report anytime.

Paid versions mainly add instant access and score tracking. But, these costs for credit reporting subscriptions can add up, and it might just make sense to use this money toward paying off debt.

However, a paid report or subscription may make sense when:

• Preparing for a major credit application Seeing your official score from Equifax or TransUnion can help avoid surprises, and motivate you to improve credit management behaviours.

• If you suspect fraud or identity theft Paid reports may give you daily or weekly monitoring alerts. It can give you detailed insights into what was defrauded or impacted, so that you can take appropriate actions. If you suspect fraud or identity theft, immediately secure your accounts by changing passwords, contact lenders, add fraud alerts, document everything including suspicious text messages and report it to  which also has a wealth of information on the latest scams to watch out for.

• When repairing your credit score Access to full details, like which account is the most problematic, can help you take targeted action.

• If a lender denies you unexpectedly A paid report helps you verify what they saw and whether an errors exist. If there’s an error, bring it up with the lender and ask them to correct it, then update the respective credit bureaus.

Even financially astute folks experience differences in their credit scores.

Their winning strategy? Stick to good credit management habits over the long-term. It keeps scores strong, and helps avoid surprises.