You might have heard the following three types of credit scores: TransUnion Equifax and Experian. These three companies have their own different models, so it's important to know how they calculate your credit score. The main three models are based on credit history and are intended to be more inclusive of new and infrequent users. If you have a Very Poor credit score, you will probably have a difficult time getting approved for credit.
TransUnion
TransUnion scores and other credit scores are intended to give lenders a snapshot on a consumer’s creditworthiness. Lenders can use these scores to make lending decisions. However, they can vary significantly from lender to lender. Although most lenders use the same scoring system they may view applicants differently depending on how they were calculated.
TransUnion scores range from 300 to 850, with the lowest being 300. Equifax scores are a bit different, with scores ranging from 280 up to 850. Both bureaus are more concerned with the average age credit accounts and payment history. FICO scores are more detailed and reflect a person's credit history and overall financial status.
The three major credit bureaus in the United States are Equifax, TransUnion, and Experian. All three use different methods to calculate scores and scores can vary between them. It is crucial to check your credit reports at all three agencies.
Experian
The Experian credit scores range from zero to 549. However, they are not fixed. They fluctuate over time depending on your financial behavior. Credit scores are calculated by statistical algorithms. Each bureau's calculation algorithm is different, so every score is unique. You should consult your credit report with the bureau to determine your exact score.
There are many methods to increase your score. You can get your credit score raised by credit score builders for no cost. Experian Boost allows you to increase your credit score up to 13 points. This service is not available to everyone. It is available only to eligible customers who pay their bills via an eligible account.
It is important to check your credit scores from all three credit agencies. Each bureau has a different score by 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. Your credit history and credit cards are factors that determine your score. But, it's important to understand that your score can change with time. To determine if you are eligible for a loan, it is important to compare your score with the one from the same period in the past.
Equifax is a major bureau that provides credit reports and has a huge database of consumer credit scores. However, 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 affected millions of consumers, although most people didn't notice a material change.