Credit scores are three-digit numbers designed to represent how likely you are to repay a lender on time.
Credit scores are one thing that potential lenders and creditors look at when they decide if they want to give you new credit. Lenders may also use your credit scores to set the interest rates and other terms for any credit they offer.
What is the highest credit score vs. a good or fair credit score? Credit scores typically range from 300 to 850. Scores in that range can usually be put into one of five groups: poor, fair, good, very good, and excellent.
When it comes to your credit, your score is one of the most important numbers. But with three major credit bureaus – Equifax, Experian, and TransUnion – reporting different credit scores, it can get confusing. So which score do lenders actually look at? Is Equifax the middle score? Let’s break it down.
What is a Credit Score?
Credit scores are three-digit numbers that are based on the information in your credit report. They show how creditworthy you are, or how likely you are to pay back a loan on time.
Credit scores typically range from 300 to 850. The higher the number, the lower the risk you pose to lenders. Anything above 720 is generally considered excellent credit, while scores below 580 are seen as poor.
The Three Credit Bureaus
There are three major consumer credit bureaus that each calculate their own credit scores based on the data in your credit report:
- Equifax
- Experian
- TransUnion
Score ranges are pretty much the same, but each bureau uses a slightly different formula, so your scores may be different from one bureau to the next.
For example:
- Equifax score: 700
- Experian score: 710
- TransUnion score: 680
This is why seeing all three of your credit scores together gives you a fuller picture of your credit health.
What is the Middle Score?
If you want to borrow money, most lenders will check your credit report from all three bureaus. But they won’t decide whether to lend money based on the highest or lowest score.
Instead, they will look at your middle score.
For example, if your scores are:
- Equifax: 700
- Experian: 710
- TransUnion: 680
The lender would base their decision on your Equifax score of 700, since that’s the middle or median score.
Basically, the middle score gives the lender a balanced perspective of your credit risk. It prevents your highest or lowest score from skewing their view of your creditworthiness.
Is Equifax Typically the Middle Score?
Whether Equifax is your middle score largely depends on your individual credit situation. But Equifax is often the median score for two reasons:
1. Industry Preference
According to mortgage data, Equifax scores are more commonly used than Experian or TransUnion in mortgage lending decisions. This means there’s a good chance Equifax will be your middle score when applying for a home loan.
2. Score Distribution
While by no means definitive, data also shows Equifax scores are more likely to be the middle score compared to Experian or TransUnion.
For example, in one analysis of thousands of consumers with scores from all three bureaus:
- 43% had Equifax as the middle score
- 29% had Experian as the middle score
- 28% had TransUnion as the middle score
So while not a guarantee, there is a tendency for Equifax to be the middle score more often purely based on industry preference and score distribution trends.
What is a Good Equifax Credit Score?
Since Equifax is commonly the middle score mortgage lenders look at, it’s important to understand what’s considered a good Equifax credit score.
The Equifax credit score ranges are:
- 800-850: Excellent
- 740-799: Very Good
- 670-739: Good
- 580-669: Fair
- 300-579: Very Poor
For the best mortgage rates, you’ll want your Equifax score to be at least 720. But scores of 670 or higher are generally sufficient for approval.
Anything below 620 will make getting a mortgage difficult and require you to pay higher interest rates.
How to Improve Your Equifax Credit Score
Here are some tips to boost your Equifax score:
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Pay all bills on time. Payment history is the biggest factor in your score.
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Lower credit utilization. Keep balances low compared to limits.
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Avoid new credit applications. Too many can lower your score.
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Correct errors on your report. Dispute any inaccuracies with Equifax.
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Become an authorized user. Ask to be added to someone’s account with good standing.
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Use credit builder loans. These demonstrate you can pay installments responsibly.
With diligence and healthy credit habits, you can maximize your chances of having a strong Equifax score in a pivotal middle position.
The Takeaway
While your three credit scores may differ, lenders will base lending decisions on your middle or median score. Industry preference and score distribution trends show Equifax is commonly the middle score. So maintaining a healthy Equifax score is wise, especially when seeking a mortgage. By understanding the role your Equifax score plays and taking steps to improve it, you can put your best foot forward with lenders.
What is a good credit score?
There is no “magic number” that will make it certain that you get a loan or that the interest rates and terms are better. Many popular scoring models, on the other hand, say that a borrower’s credit is “good” if their score is at least 670. ”.
Overall, the higher your credit score is, the more likely you are to appeal to lenders. Higher credit scores indicate that a borrower has demonstrated responsible credit behavior in the past. So, they also often receive more favorable terms and interest rates from lenders.
Credit score ranges—what are they?
Theres more than one credit scoring model available and more than one range of scores. However, most credit score ranges are similar to the following:
- 800 to 850: Excellent Credit Score People with credit scores in this range are thought to be low-risk borrowers. It might be easier for them to get a loan than for people with lower credit scores.
- These people have a very good credit score (740 to 799), which means they have a history of good credit behavior and may have an easier time getting more credit.
- 670 to 739: Good Credit Score Lenders usually think that people with credit scores of 670 or higher are good borrowers and don’t pose as much of a risk.
- 580 to 669: Fair Credit Score People in this range are often called “subprime” borrowers. Lenders might see them as a bigger risk, and it might be hard for them to get new credit.
- Credit Scores Between 300 and 579: Bad People in this range often have trouble getting new credit. In the event that your credit score is low, you’ll probably need to take steps to raise it before you can get any new credit.
Equifax Gave YOU The Wrong Credit Score
FAQ
What is a middle credit score?
The credit score in the center, is your middle credit score. In this case, a person whose credit scores were 675 from Equifax, 700 from Experian, and 760 from TransUnion would have a middle credit score of 700. myFICO. com. Which credit bureau score is usually the lowest?.
Are TransUnion and Equifax credit scores the same?
The truth is, although both credit bureaus use the same credit scoring model and factors to calculate credit scores, your TransUnion credit score and your Equifax credit score will rarely be identical; in some cases, your TransUnion score will be higher, while in others, your Equifax score will surpass it.
What if my Equifax credit score is 600?
For example, if your Equifax credit score is 700 but your TransUnion credit score is 600, that should be a red flag indicating that you need to dig a little deeper. Someone could have opened a credit account in your name and run up a balance without your knowledge.
Is Experian the same as Equifax?
Equifax offers numerical credit scores that range from 280 to 850. 8 The bureau uses some of the same factors that FICO does to come up with these scores, but the exact formula is different, just like with Experian. However, a high Equifax credit score typically indicates a high FICO score. Is Experian the middle score?.
How does a credit bureau determine a middle credit score?
Each credit bureau may generate a different credit score based on variations in their scoring models and the data they have on file. To arrive at the middle credit score, the lender takes the three scores provided by the credit bureaus and selects the one that falls in the middle.
What is a middle FICO® score?
A middle FICO Score is a borrower’s second highest FICO Score among what the three major credit reporting agencies (Experian ®, Equifax ®, and TransUnion ®) report. This is the score mortgage lenders generally use when they qualify homebuyers for home loans.
Is Equifax the main credit score?
Equifax: Which is most accurate? No credit score from any one of the credit bureaus is more valuable or more accurate than another. This means that the lender may favor one score over another, but it doesn’t mean that score is better.
Which credit score is the middle score?
For example, if your three FICO scores are 680, 530, and 630 your middle score is 620.Jun 14, 2024
Which is more accurate, FICO or Equifax?
Do lenders look at TransUnion or Equifax?