Why is TransUnion the lowest credit score?

Asked by: Mr. Nathaniel Flatley MD  |  Last update: September 28, 2022
Score: 4.4/5 (47 votes)

The lower Equifax number is a common concern for many people. The reason that this score is lower than your TransUnion score is based on the fact that TransUnion adds personal information and employment data that is weighted into their model.

Why does TransUnion give me a lower credit score?

Your credit scores are calculated using information in your credit reports, so it's normal to see your score change as lenders provide updates to that information. A slight drop in your score may not be cause for worry, especially if you're consistently practicing good credit health habits.

Why is TransUnion lower than Equifax?

Neither score is more or less accurate than the other; they're only being calculated from slightly differing sources. Your Equifax credit score is more likely to appear lower than your TransUnion one because of the reporting differences, but a “fair” score from TransUnion is typically “fair” across the board.

Does TransUnion give the lowest score?

How Does TransUnion Calculate Credit Scores? One of the scoring models that TransUnion uses to calculate credit scores is VantageScore® 3.0. This model scoring scale starts at 300 (the lowest) and caps at 850.

Is TransUnion the most important credit score?

A: As a general matter, no one credit bureau report is “more important” than the others. In today's economic environment, they are all vitally critical to your personal finances.

Why Equifax, Experian, and Transunion Have Different Scores

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Do lenders look at TransUnion or Equifax?

An Equifax credit score isn't used by lenders or creditors to assess a consumers' creditworthiness. Instead, many lenders use FICO Scores® to help determine a potential borrower's creditworthiness. FICO uses credit scores from the three reporting agencies, including Equifax and Transunion, to determine their score.

How accurate is TransUnion score?

TransUnion is Accurate, But May Conflict With Other Scores

Unfortunately, errors can happen from time to time. FICO and VantageScore both use a range of 300 to 850 to categorize credit scores.

Why is FICO score different from TransUnion?

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.

Which credit report is usually the lowest?

Which Credit Bureau has the Lowest Score? 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. Lenders typically slice the pie (between Equifax, Experian, and TransUnion) at the three-digit zip code level.

Is TransUnion or Experian better?

While both TransUnion and Experian have some similarities, Experian offers a more robust suite of consumer services. It also reveals your FICO Score 8—the score most lenders use—which can give you a better idea of what lenders see than the VantageScore that TransUnion provides.

Why is my Equifax score so much higher than TransUnion?

The credit bureaus may have different information.

And a lender may report updates to different bureaus at different times. So, it's possible that Equifax and TransUnion could have different credit information on your reports, which could lead to your TransUnion score differing from your Equifax score.

Which credit score is most accurate?

The most accurate credit scores are the latest versions of the FICO Score and VantageScore credit-scoring models: FICO Score 8 and VantageScore 3.0. It is important to check a reputable, accurate credit score because there are more than 1,000 different types of credit scores floating around.

Which credit bureau is used most?

Experian is the largest credit bureau in the United States. Still, it's not the only entity that houses consumer financial data. Equifax and TransUnion are the other major credit reporting agencies lenders, and creditors turn to for credit reports and scores used to make lending decisions.

Why is there a 100 point difference between TransUnion and Equifax?

This is because there are 3 credit bureaus and dozens of different scoring models. Differences in which report is pulled, which scoring model is used, and what information is reported to whom and when, can all have an impact on the credit score you are viewing.

How far off is Credit Karma?

Credit Karma touts that it will always be free to the consumers who use its website or mobile app. But how accurate is Credit Karma? In some cases, as seen in an example below, Credit Karma may be off by 20 to 25 points.

Why is TransUnion lower than Experian?

This is due to a variety of factors, such as the many different credit score brands, score variations and score generations in commercial use at any given time. These factors are likely to yield different credit scores, even if your credit reports are identical across the three credit bureaus—which is also unusual.

Is the score from Credit Karma accurate?

The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus. This means a couple of things: The scores we provide are actual credit scores pulled from two of the major consumer credit bureaus, not just estimates of your credit rating.

Is a FICO score of 8 good?

Consequently, when lenders check your FICO credit score, whether based on credit report data from Equifax, Experian, or TransUnion, they will likely use the FICO 8 scoring model. FICO 8 scores range between 300 and 850. A FICO score of at least 700 is considered a good score.

Is a TransUnion credit score of 700 good?

As you can see in the chart below, a Good credit score under the VantageScore model (typically used by TransUnion and Equifax) falls between 700 and 749. Similarly, a good credit score under the FICO Score model falls between 670 and 739. Source: By these guidelines, yes —a 700 score would be considered a Good score.

How do I raise my TransUnion score?

How To Raise Your Credit Score Fast
  1. Find Out When Your Issuer Reports Payment History.
  2. Pay Down Debt Strategically.
  3. Pay Twice a Month.
  4. Raise Your Credit Limits.
  5. Mix It Up.

Does TransUnion have a boost like Experian?

Ted Rossman, senior industry analyst at Bankrate, notes that Boost won't help your TransUnion or Equifax credit scores. And because the tool only works with newer versions of the FICO algorithm (specifically FICO Score 8), it won't help you get a home loan, as mortgage lenders typically rely on older FICO score models.

Do car lots use TransUnion?

While Experian and Equifax are the most popular bureaus among auto lenders and car dealers, TransUnion can also be used for auto loan decisions.

Is TransUnion legit?

Is TransUnion legit? TransUnion is one of the three major credit bureaus, and it has a strong reputation for providing reliable, consistent credit scores. It offers credit monitoring services, fraud alerts, identity theft protection and other useful services to help consumers maximize their credit.

Do car dealers look at TransUnion?

In conclusion, auto lenders use Equifax and Experian the most, while TransUnion is less used for auto loan credit checks, at least in some parts of the US.

Which credit score do car dealers use?

Auto dealerships use the FICO credit bureau, which stands for Fair Isaac Corporation. They also use the FICO Auto Credit Score, which has a range of 250 to 900. This may mean that an auto dealer has a different credit score for you than the one you see on your personal credit report.