Ever wonder why your credit score is different across TransUnion, Experian, or XDS? If you’ve checked your credit report through more than one credit bureau in South Africa, you may have been surprised to see different numbers pop up. Don’t panic, it’s completely normal.
So why does that happen? Keep reading as we share three reasons behind the differences and what they could mean for your financial health.
Before getting to this, let’s check in with what a credit bureau does. Clicking back to a previous Finance365 article:
“A credit bureau is, by definition, a company that collects and stores information about how you handle credit. These companies gather data on things like credit card use as well as loans and payment histories, and turn this into a report that credit providers can use to decide whether to lend you money.”
In essence, credit bureaus document information such as how much money you owe credit providers, how often you pay on time, and whether you’ve defaulted on any accounts.
In South Africa, the main credit bureaus include XDS, TransUnion, and Experian. Each of them uses the information they receive to generate a credit score and compile a credit report that reflects your risk as a borrower. This score is what retailers, banks, and service providers use when deciding whether to offer you credit or approve a loan.
Now, why can the scores be different? Essentially because your credit score isn’t a universal number. It changes based on the data that is available at the time and the model used to calculate it.
Here are three reasons why your score can vary from one bureau to the next:
Reason #1
Each bureau has its own scoring model:
Even when two bureaus have the same information, they may weigh it differently. One might prioritise your payment history, while another may focus more on how much credit you’ve used versus how much is available to you.
Reason #2
It could be a matter of timing:
Credit data is updated at different times. If you’ve just paid off a big amount on your credit card, one bureau might already have that on file and reflect the update, while the others haven’t received it yet.
Reason #3
There could be discrepancies or mistakes on record:
It’s also possible that a mistake, like an incorrect late payment or duplicate account, appears on one report but not another. Perhaps you’ve logged a dispute that was resolved with one bureau but is still pending with others.
Which score should you trust?
The truth is they’re all accurate, just different. No single score is more “official” than the other. This makes them all valid depending on who’s using them because credit providers decide which bureau to consult based on internal policies.
What matters most is keeping your credit behaviour consistent, so that no matter which bureau a provider checks, you come across as a trustworthy borrower. You can easily check your score with Finance365 for free.
Keep your credit in check by proactively managing your financial health:
- Check your reports at least once a month.
- Dispute any inaccuracies in the reports immediately.
- Monitor your progress with Finance365.
Staying on top of your credit reports across the board helps you catch errors early, dispute incorrect listings, and improve your overall credit wellness. At the same time, if you’re wondering where your score fits in the credit bands, why not read more about what a good credit score is for South Africans here?
Without fail, being in the know is one of the most important tools you have when it comes to your financial well-being.
Take the next step by checking your credit score today! Don’t forget to leverage Finance365’s free alert service to stay on top of changes while you improve it.
Whether you’re saving for a new car, planning for a dream home, or gearing up for a once-in-a-lifetime vacation, Finance365’s unlimited “soft” credit checks won’t impact your score and can help you reach your goals faster.
Start your journey toward better credit right now. Take control with Finance365 and open the door to the future you’ve always wanted.
