The look of your credit score can be deceiving. You may need to change which credit reporting agency you use if you’re worried that your credit score is too low.
Two of the major credit bureaus are TransUnion® and Equifax®. While both collect and store your credit information, they do so in slightly different ways.
Let’s look at how TransUnion and Equifax calculate your credit score. We’ll also explain why you may see different results from the two credit bureaus.
There are three main credit bureaus: Equifax, Experian, and TransUnion. Each of them is very important when it comes to your credit report and score. The question you may have is which credit bureau is more important: Equifax or TransUnion?
The truth is, there is no clear answer. Here is a detailed look at what makes Equifax and TransUnion different, as well as why both are important parts of your financial profile.
How Equifax and TransUnion Calculate Your Credit Score
While both Equifax and TransUnion provide your credit report and score to lenders, they go about it a bit differently:
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Scoring model TransUnion uses the VantageScore model which ranges from 300-850 Equifax uses a different model also ranging 300-850
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When TransUnion looks at your score, your payment history is given more weight at 20%. Equifax puts more emphasis on credit utilization at 30%.
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What credit history do they look at? Equifax looks at 6 years and 9 months, while TransUnion looks at 7 years.
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Data sources: Not all lenders report to both bureaus so the data can be different.
These variances mean your scores from Equifax and TransUnion may not be exactly the same. But neither score is necessarily better or more accurate.
Which Credit Bureau Do Lenders Use?
When you apply for credit, lenders may check your score and report from just one, two, or all three bureaus. There’s no set rule.
- Mortgage lenders typically look at all three to make a decision.
- Other lenders may favor one bureau over the others or take an average score.
- For joint applications, the lower median score of the applicants is often used.
While it’s hard to predict which bureau a lender will use for you, the FICO score is the one most often considered. And Equifax’s model aligns more closely with FICO.
Maintaining Your Equifax and TransUnion Credit Profile
Rather than worry about which credit bureau is more important, the best approach is to monitor both Equifax and TransUnion regularly. This way you can:
- Catch any errors: Dispute mistakes quickly before they impact your scores.
- Check new information: Make sure any changes or new accounts are reporting accurately.
- See score fluctuations: Understand if changes help or hurt your credit standing.
You can check your credit reports for free weekly through the end of 2023 and access your Equifax and TransUnion scores anytime through services like Credit Karma.
Tips to Improve Your Equifax and TransUnion Scores
To build your credit across bureaus:
- Pay bills on time: Payment history is a major factor in your scores.
- Keep balances low: High utilization hurts, so pay down cards.
- Limit new applications: Too many can indicate higher risk.
- Mix up credit types: Use installment loans along with credit cards.
Healthy credit takes time but monitoring Equifax and TransUnion will help you see progress!
Frequently Asked Questions
Which credit bureau is more important for a mortgage?
Most mortgage lenders will pull from all three bureaus but base decisions on your middle score. So you want to ensure all three credit profiles are strong.
If my scores vary between bureaus, what does that mean?
It’s normal for some variance in scores between Equifax, TransUnion and Experian. This is due to differences in their scoring models and the data each collects. As long as your scores are all in a similar range, some variance is fine.
Is a 700 credit score good across bureaus?
Yes, a credit score of 700 or higher is generally considered good across scoring models and bureaus. While the score scales differ slightly, 700 is a good benchmark to aim for with Equifax, TransUnion and Experian.
How can I improve my Equifax score if it’s lower than TransUnion?
First pull your Equifax credit report and look for any negative items only reported there. You can dispute errors. If accurate, prioritize paying down balances as credit utilization is a big factor in Equifax’s model. Also, continue making on-time payments.
Which credit score do most lenders actually use?
In most cases lenders will look at your FICO score when making lending decisions. Of the major credit bureaus, Equifax’s scoring model aligns more closely with FICO, while TransUnion uses VantageScore. But it varies by lender.
The Bottom Line
While your TransUnion and Equifax credit scores may differ slightly, both credit bureaus play an important role. Focus on building healthy credit across the board by monitoring your reports and scores, disputing errors quickly, and practicing good credit habits over time. With diligence, you can achieve strong scores with both Equifax and TransUnion.
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No credit score is necessarily better or more accurate than the other. However, your credit score can make a difference when you’re trying to get a personal loan, mortgage or auto loan.
Lenders typically use your FICO® Score to gauge your creditworthiness. Compared to TransUnion’s algorithm, Equifax’s algorithm more closely resembles the FICO® model. Therefore, your Equifax score may better predict whether you’ll qualify for a loan.
Your Equifax score won’t be a tell-all, though. In some cases, lenders may look at your scores from all three credit bureaus and take the median score. If they only look at two of the three bureaus, they’ll likely take the lower of the two scores. If you’re co-borrowing a loan, lenders will take the lowest median of the two borrowers.
Since each credit bureau uses a different scoring algorithm, a “good” score may appear “fair” on another scale. When applying for a personal loan, make sure your lowest score qualifies you for good rates and terms. A good credit score for a personal loan would be 650 or higher to get favorable rates and terms.
How Monitoring Services Calculate Your Score
TransUnion and Equifax may pull your credit information from similar sources.
Creditors are an important source of information for these agencies. These include credit card issuers, banks and lenders who may have lent you money in the past. These institutions report information on their borrowers to credit bureaus.
Credit bureaus can access your information from public records as well. Public records can include data like reports of bankruptcy or tax liens.
Still, the two weigh credit factors a little differently. Let’s take a look, per the TransUnion website:
| TransUnion VantageScore Model | |
| Payment history | 40% |
| Age and credit mix | 21% |
| Credit utilization | 20% |
| Account balances | 11% |
| New credit | 5% |
| Available credit | 3% |
Since Equifax credit scores are meant to offer consumers an educated guess at their FICO® Score, which lenders use to determine creditworthiness, the Equifax model more closely resembles the FICO® model.
| FICO Scoring Model | |
| Payment history | 35% |
| Account balances | 30% |
| Length of credit history | 15% |
| New credit | 10% |
| Credit mix | 10% |