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This means that the scores you receive from each company will differ, just like the scores from Equifax and Transunion. Not only can users track all of their financial accounts and spending in one place, but they can also track their credit score, powered by TransUnion. Weekly updates make it easy to be aware of score changes and to intervene if it seems a mistake has been made. Credit bureaus can also access your information from public records, like reports of bankruptcy or tax liens.

These include credit card issuers, banks and lenders who may have lent you money in the past. These institutions report information on their borrowers to credit reporting agencies like TransUnion and Equifax. When you check your credit, you may see multiple credit scores from different credit bureaus. But a big variance may leave you wondering what accounts for the discrepancy — and whether one score is more relevant than another. Typically banks, credit card companies, and other financial providers will show you a free credit score when you use their service. This is especially helpful for mortgage lenders as many creditors don’t report account history to all three credit bureaus.
Why Equifax, Experian, and Transunion Have Different Scores
Some financial links can reduce your credit file as this might mean your credit score is going down due to someone elses bad credit behaviour. Unlike some other credit builder loan providers, Credit Strong is highly flexible, letting you choose from a variety of payment plans. You can also cancel your plan at any time so you wont damage your credit by missing payments if you fall on hard times. When you apply for a loan from Credit Strong, you can select the term of the loan and the amount of the monthly payment. Instead, the company places the money in a savings account for you. You can also check your credit score once per month for free by signing up for Equifax Core Credit.
TransUnion, alternately, places heavy emphasis on employment history, including more extensive information regarded hiring dates, employer names, and job positions. This agency also uses color codes to sort their results into current, past-due, and unpaid accounts. Compensation may factor into how and where products appear on our platform . But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you.
Payment History
Since different algorithms are used across the different credit bureaus, an “excellent” score may appear “good” on another scale. If you’re applying for a personal loan wanting good rates and terms, you should make sure your lowest of your three scores can qualify you for that loan. A credit score is a snapshot of your credit profile at a specific point in time.
Borrowing and paying off a mortgage may necessitate a different mindset than simply keeping track of credit card balances. In order to obtain the best mortgage rates, you must first understand your credit score. Because you are only using one of the three major credit bureaus, lenders use your FICO score to determine your credit profile. One of the most evident differences between these two bureaus is that Equifax scores range from 280 to 850, but TransUnion scores range from 300 to 850. Regarding credit reports, Equifax includes 81 months of credit history, whereas TransUnion includes 84 months. Because different lenders rely on different credit reporting agencies, regularly monitoring reports and scores from more than one bureau can help you avoid financing rejections.
What Are Older Fico Models
PenFed Credit Union is the only loan company that uses only your Equifax credit data. In most cases, you won't be able to determine beforehand which credit bureaus your lender will use. In some cases, lenders will pull your credit report from two or even all three major credit bureaus. Meanwhile, TransUnion doesn’t offer a basic credit monitoring platform. With this package, you can access credit score updates, credit freeze options, score simulator tools, identity theft protection, and $1 million in identity theft insurance.

In April of 2022, the CFPB charged TransUnion, two of its subsidiaries, and a long-time executive director for deceptive marketing around their credit scores and credit-related products. The longer your credit history, the more information the credit agency has to work with, and consequently, the better your credit score. This explains why soldiers that have been away for many years do not have a credit score. If you close a credit card that you have been using for a while, you should expect your credit score to take a hit. Believe it or not, any public records, including brush-ups with the law , negatively affect your Equifax and TransUnion score.
The Truth in Lending Act and the Real Estate Settlement Procedures Act are two of the laws that the Consumer Financial Protection Bureau enforces. These laws require lenders to disclose information to buyers before and after they purchase a mortgage. Life is a series of milestones, and when it comes to finances, knowledge is your most valuable asset. If you're planning to buy a home, purchase a car, or take out a loan, find out what potential lenders are looking for.

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Incorrect credit report items are often the first sign of identity fraud. Whether it’s a lender suing you for defaulting on a loan, a bankruptcy filing in court, or any negative filing, public records can significantly damage your credit file. If someone steals your identity, applies for credit under your name, and defaults on payments, incorrect public records may appear on your credit report.

Routinely checking your TransUnion credit score is a bit more expensive. If you have a 100-point difference between your TransUnion and Equifax credit scores, you might be wondering which is more accurate. In reality, both scores are equally accurate as they have their own scoring system. Whichever credit agency from which your lender chooses to source information will be the accurate choice for that particular lender. Normally, each credit bureau lets you view a free credit report annually, for a total of three free credit reports each year. You will have to pay for additional reports on top of these free reports.
Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC. The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates . Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. A 700 is a good credit score if you want more loan options and lower interest rates.

Credit Scores Understand credit scores, credit worthiness, and how credit scores are used in day-to-day life. For lenders and credit card issuers, the information is used first to determine whether you’re approved for the loan or card. Discover uses Equifax for about half of the requests it gets for a hard inquiry, dividing the other half equally between the two other credit bureaus. The credit bureau that gives the lowest FICO or Vantage score tends to be the one that lenders use the most in your geographic area.
When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team. The truth is your lender can choose any of the two or even both of these scores. It all boils down to the lender’s preferences and what aspects of your finances they’re interested in.