Perhaps you've heard about the three main types credit scores: TransUnion Equifax, Experian, and TransUnion. These three companies each have their own credit scoring models so it's important you know how they calculate your credit score. The three main models are based on your credit history and are designed to be more inclusive to new and infrequent users. It is likely that you won't be approved for credit if your credit score is very poor.
TransUnion
TransUnion and other types of credit scores are designed to give lenders a snapshot of a consumer's creditworthiness. Lenders can use the scores to help them make loan decisions. They can differ from one lender to the next. While lenders all use the exact same scoring system, different lenders might look at an applicant depending on how it was calculated.
TransUnion scores can range from 300 to 800, with the lowest score being 300. Equifax scores can range from 280 to 855. Both bureaus consider the average age and history of payments more important. FICO scores give a more complete picture of a person's financial and credit history.
The three major credit bureaus in the United States are Equifax, TransUnion, and Experian. Each one uses different scoring models, so the scores may differ. This is why it is important that you pull your credit reports from all three agencies.
Experian
The Experian credit scores vary from 0 up to 549. They are not guaranteed. They can fluctuate depending on your financial habits. Credit scores are calculated using statistical algorithms. Each bureau's calculation algorithm is different, so every score is unique. To get your exact score you will need to consult your credit history with the bureau.
There are many ways to improve your credit score. There are credit score builders that can help you improve credit scores for free. Experian Boost is a tool that can increase your credit score by up to 13 points. However, not everyone can take advantage of this service. It is only for those who pay their bills using an eligible account.
Every credit bureau should be able to verify your credit score. Scores from each bureau vary by around 50 points. TransUnion or Experian can use different formulas when calculating your score.
Equifax
Equifax is a credit score used by lenders to determine eligibility for loans. The score is based on the number of credit cards you have, how you pay off those cards, and the length of your credit history. You should be aware that your score may change over time. You should compare your score to the same time period of the past to determine if you are eligible.
Equifax is a major financial bureau and maintains a large number of consumer credit scores. However, there's a problem. A company made a mistake when coding credit scores. This led to miscalculations of certain information. This error was not noticed by many people, but affected millions.