You might have heard the following three types of credit scores: TransUnion Equifax and Experian. 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, which are based off your credit history, are more inclusive to infrequent and new users. A Very Poor Credit Score will make it difficult to get credit.
TransUnion
TransUnion credit scores and other types of credit scores provide lenders a snapshot into a consumer’s creditworthiness. Lenders can use the scores to help them make loan decisions. However, they can vary significantly 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 range from 300 to 850, with the lowest being 300. Equifax scores range from 280-850. Both bureaus consider the average age and history of payments more important. The FICO score is more comprehensive and is based on a person's overall financial situation and credit history.
Equifax and TransUnion are the major credit bureaus of the United States. Experian is their second largest. They all use different models to compute the scores, and the scores can differ from one another. This is one reason why it is important to pull your credit report from all three agencies.
Experian
They are not static, however. They can change over time depending on financial behavior. Credit scores are calculated using statistical algorithms. The calculation method used by each bureau is proprietary, and each score is unique. To find out your exact score, it is a good idea to consult your credit file with the bureau.
There are many options to increase your score. Some credit score builders can help you raise your credit score for free. Experian Boost can help you raise your credit score 13 points. However, this service is not for everyone. It is only for those who pay their bills using an eligible account.
You should always check your credit score from all three credit bureaus. Scores from each bureau vary by around 50 points. TransUnion and Experian often use different formulas to calculate your score.
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. Your score can fluctuate over time, so it is important to be aware of this. You should compare your score to the same time period of the past to determine if you are eligible.
Equifax is a major bureau that provides credit reports and has a huge database of consumer credit scores. But there is a problem. The company recently made a mistake in the coding of some credit scores, resulting in a miscalculation of some information. This error was not noticed by many people, but affected millions.