There are many different credit scoring models. Two popular credit scoring models you may have come across are from the companies FICO and VantageScore. The score you see provided by TransUnion is based on the VantageScore® 3.0 model. FICO and VantageScore credit scores range from 300 – 850.
The Bottom Line. FICO provides a single-number credit score, while major credit bureaus like Equifax, Experian, and TransUnion (not covered in this article) offer a more detailed look at an individual's credit history along with the score.
According to Darrin English, a senior community development loan officer at Quontic Bank, mortgage lenders request your FICO scores from all three bureaus — Equifax, Transunion and Experian. But they only use one when making their final decision.
FICO is an independent data analytics company. We are not a credit bureau, and we are not owned by the three major credit bureaus -- Equifax, Experian and TransUnion. We also don't compile consumers' credit data.
Lenders typically use your FICO® Score to gauge your creditworthiness. Compared to TransUnion's algorithm, Equifax's algorithm more closely resembles the FICO® model. Therefore, your Equifax score may better predict whether you'll qualify for a loan. Your Equifax score won't be a tell-all, though.
With multiple options available, you may be wondering which of these sources is the most accurate. Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.
Credit scoring models can weigh certain information in your reports more heavily than other credit score factors. For example, one scoring model may put more emphasis on total credit usage than others. Because there are varied scoring models, you'll likely have different scores from different providers.
When the scores are significantly different across bureaus, it is likely the underlying data in the credit bureaus is different and thus driving that observed score difference.
The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan. There's a lot to learn about credit scores and credit reports and having more than one credit score can get confusing.
That is because the TransUnion credit scoring model is usually stricter than other ones. They take into consideration many credit factors such as your personal information, employment history, credit history, credit limits, financial story, and so on, which further makes it lower.
The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of mortgage. For an FHA loan, a popular choice among first-time homebuyers for its lower down payment requirement, the minimum credit score is usually around 580.
Each company uses its own formula to calculate your score. It's interesting, MY Transunion score is usually a little higher. There can be several reasons why your TransUnion credit score is lower than your scores from other credit bureaus, such as Equifax or Experian.
FICO 8 scores range between 300 and 850. A FICO score of at least 700 is considered a good score. There are also industry-specific versions of credit scores that businesses use. For example, the FICO Bankcard Score 8 is the most widely used score when you apply for a new credit card or a credit-limit increase.
TransUnion is currently offering free weekly reports online. Get your free weekly credit reports from all three national credit reporting agencies at AnnualCreditReport.com. Reviewing your credit reports regularly helps you ensure the information reported is accurate.
What is a good FICO score? A good FICO score is 670 to 739, according to the company's website. According to FICO's most recently available data in October 2023, the average credit score was 718, which falls in the good range.
FICO scores are generally known to be the most widely used by lenders. But the credit-scoring model used may vary by lender. While FICO Score 8 is the most common, mortgage lenders might use FICO Score 2, 4 or 5. Auto lenders often use one of the FICO Auto Scores.
Base FICO ® Scores range from 300 to 850. Industry-specific FICO Scores range from 250-900. A higher FICO Score represents a greater likelihood that you'll pay back your debts so you are viewed as being a lower credit risk to lenders. A lower FICO Score indicates to lenders that you may be a higher credit risk.
To make this evaluation, most lenders will pull your credit reports and scores from one or more of the three major credit bureaus - Experian, Equifax, and TransUnion. However, Here some of the major bank that use TransUnion such as: Bank of America, Wells Fargo, Chase, Chase, Citibank, and U.S. Bank.
You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with scores as low as 500. Whether you qualify for a specific loan type also depends on personal factors like your debt-to-income ratio (DTI), loan-to-value ratio (LTV) and income.
Why is my FICO® score different from my credit score? Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.
They check your credit scores or get credit reports from one or more of the three major credit bureaus: Equifax, Experian, and TransUnion. Multiple versions of FICO scores reflect the evolution of the credit market and consumer behavior since the scores first became a tool for lenders in 1989.
What credit score do auto lenders look at? The three major credit bureaus are Experian, TransUnion and Equifax. The two big credit scoring models used by auto lenders are FICO® Auto Score and Vantage.
It's possible that you could see your credit scores drop after fulfilling your payment obligations on a loan or credit card debt. Paying off debt might lower your credit scores if removing the debt affects certain factors like your credit mix, the length of your credit history or your credit utilization ratio.