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 three main models are based on your credit history and are designed to be more inclusive to new and infrequent users. It is likely that you won't be approved for credit if your credit score is very poor.
TransUnion
TransUnion and other credit scores can be used to provide lenders with a snapshot of a consumer’s creditworthiness. The scores are available for free and can be used by lenders to aid in making 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 vary from 300 to 850 with the lowest at 300. Equifax scores, on the other hand, range from 280 to 850. Both bureaus place more emphasis on the average age of credit accounts as well as payment history. The FICO score is more comprehensive and is based on a person's overall financial situation and credit history.
The three major credit bureaus in the United States are Equifax, TransUnion, and Experian. The scores are calculated using different models and can differ between each other. 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 change over time depending on financial behavior. Credit scores are calculated using statistical algorithms. Each bureau's calculation algorithm is different, so every score is unique. To determine your exact score, you should consult your credit reports with the bureau.
There are many ways you can raise your score. Some credit score builders can help you raise your credit score for free. For example, you can sign up for Experian Boost, which is a tool that can raise your credit score by 13 points. This service isn't available to everyone. It is available only to eligible customers who pay their bills via an eligible account.
You should always check your credit score from all three credit bureaus. Scores from each bureau can vary by roughly 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. Your credit history, including the number of credit card accounts you have and how they are paid off, as well as the length of those credit cards. But, it's important to understand that your score can change with time. To determine if you are eligible for a loan, it is important to compare your score with the one from the same period in the past.
Equifax is a major bureau that provides credit reports and has a huge database of consumer credit scores. But there is a problem. The company made an error in the coding process for some credit scores. It resulted in some incorrect information being calculated. This mistake was affecting millions of consumers. However, most people didn’t notice any change.