Why Your Equifax Credit Score Is Lower Than TransUnion (2024)

Last Updated: December 18, 2023

Equifax, TransUnion, and Experian are the names of the three credit bureaus and primary credit reporting companies. While all three are significant, Equifax and TransUnion are often highlighted as the 2 major credit bureaus due to the frequency with which consumers compare their scores from these two.

Each bureau receives slightly different information from creditors, leading to variations in the credit scores they report, sometimes leading to concerns when a credit score randomly drops.

Each bureau, including specialized agencies like CoreLogic Credco, receives slightly different information from creditors, leading to variations in the credit scores they report. This sometimes results in situations where your credit score doesn't match your scores from Equifax or TransUnion.

Because of this, you might often ask yourself, "Why is my Equifax score lower than TransUnion"? Or conversely, you may ask, "Why does TransUnion differ from Equifax?"

People are obsessed with their credit scores for good reason. There are several apps available to monitor your credit score to help you stay on top of it. Platforms like Credit Karma, though some users might notice issues like Credit Karma not updating Equifax or credit karma scores are wrong. For instance, it can provide insights into your credit score. If you have a good credit score, the better potential creditors view your financial trustworthiness. However, it's essential to understand the difference between acredit score and credit-worthiness and to ask, Does Credit Karma give accurate scores?

While discussing platforms for credit monitoring, it's essential to identify the best site for accurate credit scores. These sites not only provide your credit scores but also help you understand the nuances of credit reporting. For those who have checked their scores on platforms like Equifax, it's not uncommon to wonder about discrepancies like a credit score of 617 or even a 619 credit score.

When applying for financial products, many people wonder, 'do banks use TransUnion or Equifax?' The answer varies as different banks may prefer different bureaus. Your interest rate and terms for credit cards, car loans, mortgages, and even rentals will be far better with a good or excellent credit score.

Whether you are applying for a credit card, car loan mortgage, jobs, or even rentals, your interest rate and terms will be far better with a good or excellent credit score. People with a 600 Equifax credit score or fair credit scores, for example, are always looking for better ways to monitor their scores without incurring additional costs. Many are unaware that they can access their free TransUnion FICO 8 score through certain platforms, providing them with a clearer picture of their credit health. Some might even be curious about how a 640 credit score from TransUnion compares to their Equifax score.

For those new to credit or just starting their financial journey, it's crucial to understand the different credit bureaus and how they operate. This ensures that you maintain a good financial standing across all bureaus. It's also worth noting that while many are familiar with the FICO scoring system, there are also the VantageScore credit score and VantageScore credit score models that some platforms use.

Credit scores are not generated randomly. They are based on your history as a debtor and are updated periodically. Let's take a look at credit scores and credit scoring models, and then look more deeply into the credit reporting agencies or credit bureaus.

To skip the article and speak to a debt specialist right away, we offer a FREE consultation.

Who Are the Credit Reporting Agencies? Understanding Where Your Credit Scores Come From

Many people worry about having a poor score, often asking, "What is the worst credit score?" and "What is the lowest credit score?" To prevent any inaccuracies, it's essential to ensure your credit information is correct across both agencies. Some even consider using resources like the "accurate-credit-bureau-lease-agreement" to guarantee accuracy in their rental agreements.

When you borrow money, your creditor will generally report your payment history to one or all of the three credit bureaus. Once you have at least six months of credit history, your data is subjected to scoring models by either FICO or VantageScore. These three credit bureaus then generate a credit score.

Credit scores are based on five different factors: payment history, credit utilization, age of credit, credit mix, and application history. This data is subjected to slightly different scoring models, so numbers may vary slightly.

Payment history is the single biggest factor in credit scores, weighted at 35% of your score. If you skip or make late payments your credit history takes a ding. Enough of these dings and your Equifax beacon score. A credit card company will always report late payments!

The second factor is credit utilization. This factor represents 30%of your score. Utilization looks at how much of your revolving debt you are using versus your credit limit.

Revolving debt includes loans like credit cards or home equity loans. The more of your credit limit you are using, the higher the ratio and the more credit risk will lower your credit score.

The age of credit is 15% of your score. The older your credit, the better your score. Having credit cards or other personal loans for years improves your score. If you're starting from scratch, you need at least 6 months of credit usage to have a credit report. Learn more about how to build credit when you have none.

The credit mix represents about 10% of your score. Credit mix means that you have a variety of credits including rent or mortgage, credit cards, car loans, etc.

The last factor is application history (10%). Every application for a credit card or a loan results in credit inquiries or a "pull." Hard pulls, or the release of the full report, temporarily lowers your credit score. Soft pulls do not affect your credit score.

Who Are the Three Major Credit Bureaus?

There are three different major credit bureaus:TransUnion,Equifax, andExperian. Each credit bureau collects financial data from creditors. The data is then scored by FICO or VantageScore.

Beyond the three well-known credit bureaus, there are specialized agencies like CoreLogic Credco, known for their Credco Corelogic rapid scoring system, that focus on providing additional financial data and services, which various lending institutions might utilize.

Once you have a credit rating, it can be released to anyone who has permission to access your report. These include potential employers, lenders, landlords, etc.

The credit bureaus collect slightly different data and use different scoring models, and since creditors are not required to report your data, each one may have slightly different information.

If you have wildly different credit scores from the big three, take time to see why - they should be roughly the same. There are also other credit bureaus. One credit bureau on this list is CoreLogic Credco. It's worth noting that with bureaus like CoreLogic Credco, you can also opt for a 'CoreLogic credit freeze' if you suspect any fraudulent activities on your account.

This can provide an added layer of security. There are more than just 3 credit reporting agencies. However, the major consumer credit bureaus are the big three.

In instances of suspected fraud or identity theft, options like a CoreLogic credit freeze are available. This measure restricts access to your credit report, making it harder for identity thieves to open new accounts in your name.

Equifax Vs Experian Vs TransUnion

You are entitled to free credit reports, including the comprehensive Equifax 3 in 1 credit report, once a year. You can view these free credit reports for free through AnnualCreditReport.com. Additionally, some platforms offer free credit scores for users to monitor their credit health.

Equifax Credit Reports

Equifax Credit Reports charges for reports ordered through the website. If you need to contact them for any clarifications, you might consider using the Equifax fax number. It's also essential to understand the Equifax credit score, which ranges from 300 to 850, and to regularly check your Equifax credit info to ensure accuracy.

Experian Credit Reports

• charges for reports ordered through website
• dispute button on website
• will notify the other credit bureau if you notify them of a fraud
• credit freeze fraud alerts available, but must notify all three yourself
• Experian credit scores – 300 – 850

TransUnion Credit Reports

• charges for reports ordered through website
• dispute button on website
• paid credit monitoring subscription through TransUnion credit monitoring service
• will notify the other credit bureau if you notify them of a fraud
• credit freeze fraud alerts available, but must notify all three yourself
• TransUnion credit score – 300 – 850

To further simplify the understanding of credit scores, resources like the TransUnion credit score chart are invaluable. They categorize scores into different ranges, helping consumers easily interpret where they stand and, determine if Discover Credit Scorecard is accurate.

• Which is more important TransUnion or Equifax?

  But, one might wonder, is their credit score accurate? It's crucial to ensure that both credit agencies have your correct information so you can get the best rates when you're ready to borrow money.

  It's crucial to ensure that both credit agencies have your correct information so you can get the best rates when you're ready to borrow money. With a variety of resources available, like the TransUnion credit score chart, it's easier than ever to understand where you stand. But, one might wonder, is their credit score accurate?

  You should make sure that both credit agencies have your correct information so you can get the best rates when you're ready to borrow money.

• Do lenders check Equifax or TransUnion?

  Lenders can check either or check TransUnion and Equifax credit reports. Since slightly different information is reported to each credit bureau, checking multiple credit scores may offer a more complete picture of your money handling skills.

• What is a good Equifax credit score?

  Equifax credit scores over 660 are considered a good score. Your Equifax credit report will be slightly lower than the others.

• How do I build my Equifax credit score?

  You can build your credit scores by doing the following:

  See Also

  Wells Fargo reverses plan to end personal credit lines after customer backlash

  • checking your credit reports for errors
  • correcting errors
  • paying bills on time and in full
  • paying down your revolving debts

  You can pay a credit repair company to fix the errors, but you can do it yourself.

• Are Equifax scores accurate?

  Equifax credit scores are based on the information in your credit report, so they should be accurate if the information in your report is correct. However, sometimes errors can occur in your credit report, which could affect your score.

  If you think there may be an error on your Equifax credit report, you can dispute it with Equifax. You can also get a free copy of your credit report from AnnualCreditReport.com once per year to check for errors.

Types of Credit Scores: FICO vs VantageScore

Credit reports often use one of two credit scores –FICO scoring model orVantageScorescoring model. FICO is the most common. The credit bureaus create a FICO score based on what is reported to them. This accounts for any difference in FICO scores among different credit bureaus.

Your credit score is reported as a three-digit number with the higher the number, the less credit usage rate and better the score.

VantageScore is an algorithm developed that uses the consumer credit information on file. It is particularly good for people with thin credit history or very young history. VantageScore and FICO use the same score divisions to determine their credit scores:

• Excellent = 750 and above
• Good = 700-749
• Fair = 650-699
• Poor = 550-649
• Bad = Below 550
  

Good credit scores are those over 670 for FICO. A VantageScore score over 661 is considered good. The score differences come from the different reported data and their different credit scoring models. However, people often question their scores, wondering things like "Is a 744 credit score good or bad?" or "Is a 777 credit score good or bad?"

The major difference between FICO and non-FICO scores is that each reporting company uses a slightly different model based on each company's preferences. FICO requires a credit history that is at least six months old and with activity within the last six months. Your three credit scores should be roughly the same, with Equifax credit scores being slightly lower than the others.

Why is Equifax Lower than TransUnion?

The biggest difference between your TransUnion credit report and Equifax credit score is that the TransUnion credit score reports your employment history and personal information. The other two credit reporting agencies or credit bureaus report only the name of your employer. This is the major difference in Equifax's credit scoring model.

Why Are TransUnion and Equifax Scores So Different?

Equifax and TransUnion have different scores because slightly different information is reported to each credit reporting agency. In addition, TransUnion reports your employment history and personal information. Equifax's different credit scoring model results in lower scores.

Why Is My Equifax Score Lower Than TransUnion?

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.

The other two only show one credit report and the name of your employer and do not add any weight to that fact. Both TransUnion and Equifax credit reports are reasonable indicators of your financial responsibility.

Why is My Equifax Score Lower than Others?

Sometimes, you might also wonder, Why is my credit score unavailable? This can happen due to various reasons, including not having enough credit history or discrepancies in your credit report. It's essential to regularly check your credit reports to ensure all information is accurate and up-to-date.

Your Equifax score is lower than the other credit scores because there is a slight difference in what is reported to each credit agency and each one uses a slightly different method to score your data. Your Experian, Equifax and TransUnion credit reports should be fairly similiar. Learn more about achieving the highest credit score possible Equifax.

How Do I Know If My Credit Report Is Correct?

Mistakes happen during your credit history, so always check your credit regularly from all three credit reporting agencies. There are several ways to access your credit report from Experian, TransUnion and Equifax. You are legally entitled by federal law to one free copy of your report per agency per year.

For instance, request one agency report in January, one of the second in May, and one from the final in September. This is a fairly simple way to keep an eye on your financial information and your credit history. Many people have discovered identity theft can ruin your credit score from a sudden drop in your credit report. Access free credit reports and annual credit reports through AnnualCreditReport.com.

Another way to monitor your credit report regularly is to sign up to free credit score websites, or websites likeCreditSesameorCredit Karma. Credit Karma will actually try to help you build your credit score by suggesting credit cards that you could be eligible to sign up for.

Credit Karma also updates you with breaches to credit breaches that include any of your information. Since Credit Karma is free, it is a good way to keep an eye on your credit profile and your overall credit history and health.

Additionally, review any specific credit accounts you've opened, such as a Best Buy credit card, to ensure they are correctly reported and there are no unauthorized transactions.

Once you have your credit reports, check them carefully. Look for:

• Correct name
• Correct address
• Correct Employer
• Lines of credit that you have or have not authorized
• Credit cards that you have or have not authorized
• Personal Loans that you have or have not authorized
• Aged out debt issues like bankruptcy (generally 10 years), collections (generally 7 years)
• Aged out judgments based on your state’s statute of limitations

If you find an error, send COPIES of documentation to the credit bureau along with explanations or the errors. You may have to do it several times and stay on top of them.

If you are denied credit based on your credit score, you can request the reason and a new report.

If you have had identity theft, you can contact each of the major credit bureaus individually and place a fraud freeze on your credit until you get the issue solved.

How Can I Improve My Credit Score?

If you are not happy with your credit score from Experian, Equifax and TransUnion, you can start to fix it immediately. When considering credit card options, also be aware of any balance transfer fee that might apply. This fee is charged when you move a balance from one credit card to another, and it can impact your overall credit costs. First, work on paying bills on time. Consider debt consolidation as a strategy to get low credit scores and manage your debts effectively. Since 35% of your score is based on your payment history and timely payments, it can be a quick way to improve your score.

Next, use your credit carefully as part of your credit repair strategy. Credit utilization accounts for 30% of your score. Credit utilization is the ratio of outstanding credit card account balance versus your credit limit.

The lower your utilization ratio, the better. For instance, if you have a $1000 limit and $900 in outstanding balance, your credit utilization is 90%. Pay down your credit card bills. You can also ask for increased credit limits. Just don't use the increased limits!

Credit age makes up 15% of your score. Basically, the longer you have had credit reported to the bureaus, the better. Having old credit – cards held for a long time – is also helpful. Lenders also like to see a variety of credit types.

Credit variety accounts for 10% of your score. And finally, the number of recent inquiries count for 10% of your score. This means you do not want to apply for credit cards just to decrease your purchase costs. Every single time you do that, your credit takes a temporary hit.

Differences Between TransUnion and Equifax

While both TransUnion and Equifax are major credit reporting agencies and collect similar types of information, there are key differences that make each one unique. A common question people have is, what's more important Equifax or TransUnion? The primary differences between them lie in the details of their proprietary scoring models, the lenders they partner with, and the additional services they offer.

1. Scoring Models: Both agencies use slightly different scoring models to calculate credit scores. This means that the same credit activity can have different impacts on the scores calculated by each agency. They each also consider certain factors more heavily than others when calculating scores.
2. Partner Lenders: Not all lenders report to all three major credit bureaus. Some lenders might choose to report to only one or two bureaus, which can lead to discrepancies in the information each bureau has and, consequently, differences in the credit scores they calculate.
3. Additional Services: Both TransUnion and Equifax offer additional services beyond just credit reporting, such as credit monitoring. These can include credit monitoring, identity theft protection, and tailored credit information products. The exact services and their cost can vary between the two bureaus.

Remember, while your scores may differ between these two bureaus due to these differences, it's crucial to maintain good credit habits. Regularly reviewing your credit reports from all three major credit bureaus - Equifax, TransUnion, and Experian - will help you understand your financial health better.

The Importance of Good Credit

Your credit report data is very important to your future and is a key part of your financial planning. Whether you are buying a house or getting an auto loan or loans, looking for a new job, or wanting to start on your education, your credit score matters. Given its significance, people often ask, Does Equifax's credit score matter? The answer is a resounding yes.

There isn't much difference among the three bureaus – Experian, Equifax and TransUnion – but each needs to be monitored for accuracy. A frequent question among consumers is, does TransUnion or Equifax matter more? The reality is that both are vital, and discrepancies in scores from one bureau to another can have various reasons, making it essential to keep an eye on both.

If you have credit card debt that is dragging down your credit score and you are having trouble making even minimum payments, Pacific Debt, Inc may be able to help you get out of debt and learn to live debt free.

What is a good Equifax credit score?

Understanding what constitutes a good Equifax credit score is essential for managing your personal finance health. A good Equifax credit score typically falls within the range of 670 to 739. This strong credit score indicates a solid credit history and demonstrates to lenders that you are a reliable borrower.

Maintaining a good Equifax credit score can open doors to various financial opportunities, such as favorable interest rates on loans, credit cards, other credit accounts and even potential rental applications. It reflects your creditworthiness and lenders' confidence in your ability to repay debts responsibly.

It's important to note that credit score ranges may differ slightly depending on the scoring model used. Equifax, one of the major credit reporting agencies, employs the FICO scoring model, which ranges from 300 to 850. In this context, a good Equifax credit score would be closer to the upper end of that scale.

Remember, achieving and maintaining a good credit score requires responsible financial habits, including making timely payments, keeping credit card balances low, and managing your debts effectively.

By understanding what a good Equifax credit score entails and implementing healthy credit practices, you can enhance your financial well-being and improve your chances of accessing credit on favorable terms.

Moreover, a good credit score can provide you with better terms when you 'buy purchases' on installment or finance. This can lead to significant savings in the long run.

We have helped thousands of people reduce their credit card debt. To find out if we can help you, call one of our debt specialists for a free consultation.

RELATED POSTS

• The 5 Main Credit Score Factors You Need To Know(November 23, 2020)
• How To Do A Credit Card Balance Transfer(November 4, 2020)
• The 8 Best Apps for Monitoring Your Credit Score(October 12, 2020)
• What You Should Do If You Experience a Data Breach(September 24, 2020)
• How To Rent An Apartment With Bad Credit(February 7, 2020)

Bruce from Portage Indiana Debt Relief ReviewArpik from Glendale California Debt Relief Review