Whats the difference between transunion and equifax credit score

Q: Do lenders look at Equifax or TransUnion?

An Equifax credit score isnt used by lenders or creditors to assess a consumers creditworthiness. Instead, many lenders use FICO Scores® to help determine a potential borrowers creditworthiness. FICO uses credit scores from the three reporting agencies, including Equifax and Transunion, to determine their score.

Q: Why is my credit score different between TransUnion and Equifax?

Because there are varied scoring models, youll likely have different scores from different providers. Lenders use many different types of credit scores to make lending decisions. The score you see when you check it may not be the same as the one used by your lender.

Índice Show

Tri-Merged Credit Reports
Credit Reporting Agencies
Equifax Score
TransUnion Score
Comparing Scores
Do lenders look at Equifax or TransUnion?
Which credit score is most important Equifax or TransUnion?
Why is my credit score different between TransUnion and Equifax?
Which credit score matters more TransUnion or Equifax or Experian?

Experian, Equifax or TransUnion: Which Credit Report is More Important?

Q: Hi Lynnette, I have noticed a difference between my credit reports from Experian, TransUnion and Equifax.

Can you tell me which credit report is more important to a lender?

A: As a general matter, no one credit bureau report is “more important” than the others.

In today’s economic environment, they are all vitally critical to your personal finances.

However, whenever you are seeking credit – perhaps a mortgage, car loan or student loan – then the most “important” credit report or credit score is the one that a lender pulls to determine whether or not to approve your loan.

Some lenders only pull one credit report. So let’s say you want to purchase a car and you require financing.

If the lender considering your car loan only pulls an Experian credit report, then that’s the most critical report.

The challenge, of course, for consumers is that you never really know which bureau report a lender will pull.

It could be Equifax, Experian or TransUnion – or perhaps all three.

Read: The Key Differences Between Your Equifax, TransUnion and Experian Credit Reports

Tri-Merged Credit Reports

For most mortgages, lenders pull something known as a “tri-merged” credit report, which gives them information from all three of the major credit bureaus.

Additionally, mortgage lenders typically use the “middle” score of your three credit scores to determine the rate and terms for a home loan.

For these reasons, you should always ensure that all information on all three credit reports is accurate and up-to-date, and that all your credit scores are as high as possible.

As you plan your financial future, you’ll come to realize the importance of credit. Your credit is what many banks and credit card companies use to determine whether or not to offer you a loan or line of credit. Your credit score is made up of many factors, including the length of your credit history, the standing of your current and past credit accounts and the amount of available credit you have. Three different reporting companies compile your credit information. These companies assign you individual scores, which can vary.

Tips

Equifax and TransUnion differ in how far they go back in your credit history, how they weigh accounts and how they present your information. The credit scores also can differ in their calculations depending on how up-to-date and accurate each bureau's information is.

Credit Reporting Agencies

In the United States, banks and other lending institutions use three different credit bureaus – Equifax, Experian and TransUnion – to determine your creditworthiness. Banks select certain agencies or even certain types of reports within those agencies to purchase credit information for customers applying for credit. For example, a bank that is determining whether to offer you a car loan – and at what rate – may purchase an industry-specific FICO score, which reflects your past auto loan history and payments.

Equifax Score

Your Equifax score likely differs from your TransUnion or Experian score. That’s because Equifax tracks your accounts differently than the other credit reporting bureaus. Instead of grouping all of your present and past accounts together, Equifax separates your credit accounts into “open” and “closed” categories. This means that a credit card account closed four years ago may be weighted differently than one that is currently open. Equifax also uses an 81-month credit history, which differs from the traditional seven years that other agencies use.

TransUnion Score

TransUnion uses most of the same personal information that Equifax does in scoring your credit; however, TransUnion may find certain aspects of your credit history more important than Equifax does. For example, TransUnion credit reports feature a more extensive employment history section. This report notes your current and previous employer, your position and your hiring date. Banks may use your TransUnion report to verify your employment information. Additionally, your TransUnion report shows a unique credit account scoring method, which uses colors to reflect your account standing and symbols to show on-time, late or unpaid payments.

Comparing Scores

Both Equifax and TransUnion use the Fair Isaac Corporation (FICO) mathematical formula to calculate credit, but since each agency has access to different pieces of information, that mathematical formula won't always calculate the same score. Credit report errors are also very common, so while Equifax may have your correct information, TransUnion may not – and vice versa. Check your credit reports from all bureaus regularly for any incorrect information that could be bringing your score down. You can obtain a credit report from Equifax, TransUnion or Experian directly, or you can go through one of many credit monitoring services in the market.

Do lenders look at Equifax or TransUnion?

An Equifax credit score isn't used by lenders or creditors to assess a consumers' creditworthiness. Instead, many lenders use FICO Scores® to help determine a potential borrower's creditworthiness. FICO uses credit scores from the three reporting agencies, including Equifax and Transunion, to determine their score.

Which credit score is most important Equifax or TransUnion?

Equifax: Which is most accurate? No credit score from any one of the credit bureaus is more valuable or more accurate than another. It's possible that a lender may gravitate toward one score over another, but that doesn't necessarily mean that score is better.

Why is my credit score different between TransUnion and Equifax?

Because there are varied scoring models, you'll likely have different scores from different providers. Lenders use many different types of credit scores to make lending decisions. The score you see when you check it may not be the same as the one used by your lender.

Which credit score matters more TransUnion or Equifax or Experian?

Although Experian is the largest credit bureau in the U.S., TransUnion and Equifax are widely considered to be just as accurate and important. When it comes to credit scores, however, there is a clear winner: FICO® Score is used in 90% of lending decisions.