You may have heard of the three main 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. These three main models are based upon your credit history. They are more inclusive for new users and less frequent 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 these scores to make lending decisions. These scores can be different from one lender or another. Although most lenders use the same scoring system they may view applicants differently depending on how they were calculated.
TransUnion scores range between 300 and 850, with 300 being the lowest. Equifax scores can range from 280 to 855. Both bureaus place more emphasis on the average age of credit accounts as well as payment history. FICO scores give a more complete picture of a person's financial and credit history.
The three major credit bureaus in the United States are Equifax, TransUnion, and Experian. They use different algorithms to compute scores and they can have different scores. This is one reason why it is important to pull your credit report from all three agencies.
Experian
Although the Experian types range from 0-549 credit scores, they aren't set in stone. They can fluctuate depending on your financial habits. Credit scores can be calculated using statistical algorithms. The calculation method used by each bureau is proprietary, and each score is unique. For a precise score, consult your credit report.
There are many methods to increase your score. Credit score builders are available to help you improve your credit score. Experian Boost can help you raise your credit score 13 points. This service is not available to everyone. Only those who pay their bills through an eligible account are eligible for it.
Always check your credit score at all three credit bureaus. Each bureau has a different score by 50 points. TransUnion, Experian and other bureaus often use different formulas in calculating your score.
Equifax
Equifax is a type if credit score used by lenders for determining 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. You should compare your score to the same time period of the past to determine if you are eligible.
Equifax is a major credit bureau and has a large database of consumer credit scores. But, there's a problem. Recently, the company made a mistake in the code of credit scores. The result was a miscalculation. This error affected millions of consumers but most didn't notice any significant changes.