Perhaps you've heard about the three main types credit scores: TransUnion Equifax, Experian, and TransUnion. You should be aware that each company uses a different model to calculate your credit score. The main three models are based on credit history and are intended to be more inclusive of new and infrequent users. It is likely that you won't be approved for credit if your credit score is very poor.
TransUnion
TransUnion scores and other credit scores are intended to give lenders a snapshot on a consumer’s creditworthiness. The scores are available for free and can be used by lenders to aid in making lending decisions. However, they can vary significantly from lender to lender. Lenders may use the same scoring system but they might view an applicant differently depending upon how their scores were calculated.
TransUnion scores range anywhere from 300 up to 850, the lowest being 300. Equifax scores on the other hand range from 228 to 850. Both bureaus are more concerned with the average age credit accounts and payment history. FICO scores are more extensive and are based on credit history and financial condition.
Equifax (TransUnion), Experian, and TransUnion are America's three main credit bureaus. They all use different models to compute the scores, and the scores can differ from one another. This is why it's important to get your credit report from each agency.
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. To determine your exact score, you should consult your credit reports with the bureau.
There are many methods to increase your score. You can get your credit score raised by credit score builders for no cost. Experian Boost allows you to increase your credit score up to 13 points. However, this service is not for everyone. Only those who pay their bills through an eligible account are eligible for it.
All three credit bureaus should be able and willing to provide you with a credit report. The scores from each bureau differ by about 50 points. TransUnion or Experian can use different formulas when calculating your score.
Equifax
Lenders use the Equifax credit score to determine whether you are eligible for a loan. The score is based on the number of credit cards you have, how you pay off those cards, and the length of your credit history. Your score can fluctuate over time, so it is important to be aware of this. 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 with a large collection of consumer credit scores. But there is a problem. The company made a serious error in the codification of some credit scores. This mistake affected millions of consumers, although most people didn't notice a material change.