You may have heard of the three main types of credit scores: TransUnion, Equifax, and Experian. Because each company uses their own models to calculate credit scores, it is important that you understand the differences between them. These three main models are based upon your credit history. They are more inclusive for new users and less frequent users. You may have trouble getting credit approvals if you have a very low credit score.
TransUnion
TransUnion credit scores and other types of credit scores provide lenders a snapshot into a consumer’s creditworthiness. The scores are available for free and can be used by lenders to aid in making lending decisions. The scores may vary from lender to lender. While most lenders will use the same scoring system, they can still view an applicant differently depending on how their scores were calculated.
TransUnion scores vary from 300 to 850 with the lowest at 300. Equifax scores, on the other hand, range from 280 to 850. Both bureaus are more concerned with the average age credit accounts and payment history. FICO scores are more extensive and are based on credit history and financial condition.
Equifax, TransUnion, or Experian are the main credit bureaus in the United States. The scores are calculated using different models and can differ between each other. This is one reason why it is important to pull your credit report from all three agencies.
Experian
They are not static, however. They will fluctuate depending upon your financial behaviour. Credit scores are calculated using statistical algorithms. Each bureau has its own calculation method and every score is unique. To determine your exact score, you should consult your credit reports with the bureau.
There are many methods to increase your score. Some credit score builders can help you raise your credit score for free. Experian Boost is a tool that can increase your credit score by up to 13 points. But not everyone is eligible for this service. Only people who have an eligible account that they pay their bills through are eligible.
Every credit bureau should be able to verify your credit score. Scores from each bureau vary by around 50 points. TransUnion and Experian use different formulas to calculate scores.
Equifax
The Equifax is a type of credit score that lenders use to determine your eligibility for a loan. The number of credit cards that you have, how often you pay them off, and your credit history all contribute to the score. But, it's important to understand that your score can change with time. It is therefore important to compare your score with that of the previous time period to determine whether you are eligible to borrow money.
Equifax is a major credit bureau with a large collection of consumer credit scores. But, there's a problem. The company recently made a mistake in the coding of some credit scores, resulting in a miscalculation of some information. This mistake was affecting millions of consumers. However, most people didn’t notice any change.