The three major types of credit scores you may be familiar with are TransUnion, Equifax and Experian. Each company has its own model, so it is important to understand how these companies 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. A Very Poor Credit Score will make it difficult to get credit.
TransUnion
TransUnion and other types are used by lenders to get a snapshot about a consumer's creditworthiness. Lenders can use the scores to help them make loan decisions. However, they can vary significantly from lender to lender. While lenders all use the exact same scoring system, different lenders might look at an applicant depending on how it was calculated.
TransUnion scores can range from 300 to 800, with the lowest score being 300. Equifax scores range from 280-850. Both bureaus weigh the average age of credit accounts, as well payment history, more heavily. FICO scores are more detailed and reflect a person's credit history and overall financial status.
Equifax, TransUnion, or Experian are the main credit bureaus in the United States. Each one uses different scoring models, so the scores may differ. This is one reason why it is important to pull your credit report from all three agencies.
Experian
They are not static, however. 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 to improve your credit score. Some credit score builders can help you raise your credit score for free. Experian Boost allows you to increase your credit score up to 13 points. This service is not available to everyone. This service is only available to those who have a qualifying account and pay their bills.
Always check your credit score at all three credit bureaus. Scores from each bureau can vary by roughly 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. The Equifax score is determined by how many credit cards you have, the amount you pay off and the length your credit history. It is important to remember that your score could change over time. 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 is a major credit bureau and has a large database of consumer credit scores. But there's one problem. The company made a serious error in the codification of some credit scores. This error affected millions of consumers but most didn't notice any significant changes.