In the section below, we broke down how each bureau goes through this process in detail. Equifax: How Are Scoring Models CalculatedĪs we previously highlighted, TransUnion and Equifax calculate their scoring models in different manners, but they also assess the scores differently. Due to the fact that credit scores can change over the course of time, it is essential to compare scores from the same period when comparing them with other credit bureaus. You Might Have Scores From Different DatesĪ credit score is no more than a snapshot of your credit profile at one point in time. It is also important to note that lenders might send their reports at different periods of time, so it is possible that TransUnion might have fresher updates than Equifax and vice versa. The credit-reporting companies may not possess all the information about you since some lenders might report information to all major credit bureaus, while others may do it to only one or two.
The Credit Bureaus May Possess Different Information To put everything in simple terms, we singled out three main reasons why your credit scores from TransUnion and Equifax can differentiate.Īll credit-scoring agencies, including TransUnion and Equifax, use proprietary scoring models, and despite the fact that credit scores are based on similar or the same factors, such as payment history and the number of accounts in good standing, each model can weigh some of these factors in a different way. Another essential thing to note is that some lenders and creditors solely focus on scores that emphasize the info relevant to a particular industry, while others opt for blending TransUnion, Equifax, and Experian scores. The major credit bureaus also do not get the same information from lenders and creditors, so this is another reason why the scores can vary sometimes. As we previously said, your credit score is not the same in every credit bureau.Įquifax and TransUnion rely on the same factors to come up with the credit scores, but these factors are evaluated via different credit-scoring methods, which makes the biggest difference between these two companies and how they provide the final scores. TransUnion and Equifax are alongside Experian, the biggest credit bureaus, and they maintain databases that contain information about over 220 million Americans.
TRANSUNION GOOD CREDIT SCORE RANGE FREE
It is also important to mention that credit reports from each of the three major credit bureaus can be accessed annually, and this information is completely free of charge for every consumer. A credit report provides information about a consumer’s financial standing, such as: Some lenders opt to use internal scoring models too, but generally speaking, it is more common to work with lenders using the scores of one of these three credit reporting agencies.
These scores are based on a consumer’s credit report, and everyone has more than one credit score since they are calculated by three main credit reporting agencies – TransUnion, Equifax, and Experian. What Exactly Are Credit Scores?Ĭredit scores are numbers that lenders use to determine the level of risk linked with lending money to their consumers. We have a lot to cover, so let us begin without further ado. In order to help you get a better understanding of the variation in these scores, we will point out some main distinctions between Equifax and TransUnion calculating algorithms and break down both to paint you a better picture of what each represents. This topic is very important, especially if you wonder why you sometimes notice slightly different numbers when you read your credit reports, and we will look to reveal some unclear facts about it.įor starters, when you pull your Equifax and TransUnion credit reports, you will notice that the credit scores may vary. the two major credit bureaus, and the difference between them. In today’s article, we are going to talk about TransUnion vs.
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