Is TransUnion more important than Equifax? The short answer is no Both TransUnion and Equifax are reliable credit reporting agencies that compile reports and calculate your credit scores using different scoring models.
What is the difference between TransUnion and Equifax?
TransUnion uses the VantageScore ® model when calculating your credit score, based on a range of 300 – 850. A “good” score may rest in the 661 – 720 range. Equifax, meanwhile, uses its own scoring model with a range of 280 – 850, with “good” being 670 – 739 and higher. Their algorithm closely resembles the FICO ® model.
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.
Why is my TransUnion and Equifax score different?
Because there are varied scoring models , you’ll likely have different scores from different providers. Lenders use many different types of credit scores to make lending decisions. The score you see when you check it may not be the same as the one used by your lender.
Do car dealerships use TransUnion or Equifax?
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 is most accurate?
Which credit score matters the most? While there’s no exact answer to which credit score matters most, lenders have a clear favorite: FICO® Scores are used in over 90% of lending decisions.
What credit report is used to buy a house?
While the FICO ® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage: FICO ® Score 2 (Experian) FICO ® Score 5 (Equifax).
Is 700 a good credit score?
FICO credit scores, the industry standard for sizing up credit risk, range from 300 to a perfect 850—with 670 to 739 labeled “good,” 740-799 “very good” and 800 to 850 “exceptional.” A 700 score places you right in the middle of the good range, but still slightly below the average credit score of 711.
Is 600 a good credit score?
Your score falls within the range of scores, from 580 to 669, considered Fair. A 600 FICO ® Score is below the average credit score Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.
Is 650 a good credit score?
A FICO score of 650 is considered fair—better than poor, but less than good It falls below the national average FICO ® Score of 710, and solidly within the fair score range of 580 to 669.
Which of the three credit scores is usually lowest?
The FICO ® Score ☉ , which is the most widely used scoring model, falls in a range that goes up to 850. The lowest credit score in this range is 300. But the reality is that almost nobody has a score that low For the most part, a score below 580 is considered “bad credit.” The average FICO ® Score in the U.S. is 704.
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.
Why is Equifax 100 points higher than TransUnion?
The credit bureaus may not have the exact same information on you A creditor could be reporting your payments to just one or two of them, instead of all three. If your credit file is different with each credit bureau, then your credit score might be different as well.
Which credit bureau is used most?
Equifax and Experian are the most commonly used credit bureaus by auto lenders.
Why is Equifax way 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.
Is 680 a good credit score?
A FICO ® Score of 680 falls within a span of scores, from 670 to 739, that are categorized as Good The average U.S. FICO ® Score, 711, falls within the Good range.
What lenders use Equifax only?
PenFed Credit Union is the only loan company that uses only your Equifax credit data. In most cases, you won’t be able to determine beforehand which credit bureaus your lender will use.
What score is used to buy a car?
Your credit score is a major factor in whether you’ll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you’ll need at least prime credit, meaning a credit score of 661 or up , to get a loan at a good interest rate.
Citations
https://www.experian.com/consumer-products/experian-equifax-transunion-credit-report-and-score.html
https://fortunly.com/articles/transunion-vs-equifax/
https://www.sofi.com/learn/content/transunion-vs-equifax-how-they-differ/
https://www.equifax.com/personal/
https://www.investopedia.com/personal-finance/top-three-credit-bureaus/
