There are three types of credit scores that you might have heard of: 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, which are based off your credit history, are more inclusive to infrequent and new users. You will likely have difficulty getting credit approval if you have Very Poor 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. While lenders all use the exact same scoring system, different lenders might look at an applicant depending on how it was calculated.
TransUnion scores range anywhere from 300 up to 850, the lowest being 300. Equifax scores range from 280-850. Both bureaus give more weight to average age of credit accounts and payment history. FICO scores are more detailed and reflect a person's credit history and overall financial status.
Equifax and TransUnion are the major credit bureaus of the United States. Experian is their second largest. They all use different models to compute the scores, and the scores can differ from one another. This is one of the reasons why you should pull your credit report at all three agencies.
Experian
The Experian credit scores range from zero to 549. However, they are not fixed. They will fluctuate depending upon your financial behaviour. Credit scores are calculated by 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. Experian Boost is a tool that can increase your credit score by up to 13 points. This service is not available to everyone. It is only for those who pay their bills using an eligible account.
All three credit bureaus should be able and willing to provide you with a credit report. Each bureau's scores differ by approximately 50 points. TransUnion, Experian and other bureaus often use different formulas in calculating your score.
Equifax
Equifax is a type credit score that lenders use in determining your eligibility for a loan. Your credit history and credit cards are factors that determine your score. Your score can fluctuate over time, so it is important to be aware of this. You need to evaluate your score against the score of the same period in order to determine if you're eligible for loan approval.
Equifax, a major credit bureau, has a large consumer credit score database. There is one problem. The company recently made a mistake in the coding of some credit scores, resulting in a miscalculation of some information. This error affected millions of consumers but most didn't notice any significant changes.