So, why are your Equifax and TransUnion scores different? Is one score more relevant than the other? What goes into their calculations? Read on to find out. Your Equifax score might be higher than your TransUnion score, or vice versa. If you’ve ever checked your own credit score, and compared your scores from both credit bureaus, you might wonder why they differ from one to the other. A lot rests on the strength of your credit score.Įquifax and TransUnion each calculate your credit score slightly differently. When you apply for any major financial product – like a personal loan, credit card, or mortgage – lenders will ask the credit bureaus for your score, which helps them determine if they want to lend money to you. Why should you care about them? Because in some ways, they hold your financial future in their hands. Helpful information from the Consumer Financial Protection Bureau.Equifax and TransUnion are the two major consumer credit bureaus in Canada responsible for credit scores. Information about your credit score from FICO. Others may provide credit scores to credit monitoring customers paying a monthly subscription fee. Use a credit score service or free credit scoring site. Some sites provide a free credit score to users. Purchase credit scores directly from one of the three major credit bureaus or other provider, such as FICO. Purchase your credit score from the three major bureaus It may be on your statement, or you can access it online by logging into your account. Many credit card companies, banks and loan companies have started providing credit scores for their customers. While lenders might approve loans to consumers with a wide range of scores, the terms will likely be better for those with higher scores.Ĭheck your credit card, financial institution or loan statement. Some lenders will tell you upfront what their minimum requirements are. Opening many credit accounts in a short amount of time can be risky.Ĭredit scores typically range from 300 to 850, with 300 considered “poor” credit and 850 considered “excellent” credit.įor the most part, the minimum credit score needed for a loan approval will depend on the lender. Suggests that you have or are about to take on more debt. New Credit Inquiries (10% of your score)Īny new applications for lines of credit.This factor considers the various types of credit you have and whether you use that credit appropriately. The longer your history of responsible credit management, the better your score will be.Ĭoncerns the types of credit you access, including credit cards, retail accounts, installment loans, finance companies, and mortgage loans. Length of Credit History (15% of your score).A good rule of thumb is not to exceed 30% of the credit limit on a credit card. If you have high outstanding balances or are nearly "maxed out" on your credit cards, your credit score will be negatively affected. Reveals how much of available credit you are using. Amounts Owed or Credit Utilization (30% of your score).This includes credit cards, retail accounts, installment loans (such as automobile or student loans), finance company accounts and mortgages. FICO scoring modelĭetails your track record of paying back your debts and bills on time. The three biggest are Equifax, Experian, and TransUnion. This information is reported by your lenders to credit reporting companies. Your credit score is generally based on information in your credit reports. ![]() When you have a good or excellent credit score, you will have an easier time being approved for loans and rental applications, get better rates on car and homeowner’s insurance, and will be offered better interest rates on loans and credit cards. Lenders use your credit score to evaluate your credit risk – generally, the higher your credit score, the lower your risk may be to the lender. A credit score is a number that evaluates your creditworthiness.
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