TransUnion is a Canadian credit risk firm known as a credit bureau. A credit agency calculates your credit score, and Equifax and TransUnion are two of the leading credit agencies in Canada.
Credit bureaus’ information to calculate your score is based on what lenders tell them. Credit agencies use the information collected about individual consumers and create credit reports and scores provided to various lenders and other financial institutions. A credit institution is an independent third-party company that relays information between consumers and lenders. All consumer credit reporting agencies use public records and other sources to create a credit report and score for you so that lenders can use it to decide whether to update your credit.
Each credit bureau may have different information about how you have used your credit in the past. Moreover, each credit reporting agency may receive additional data from your lender or loan and use different scoring models to calculate your score. As a result, a lender or lender may measure many factors differently, resulting in other scores. The calculation of individual estimates may also vary depending on how current and accurate the information is for each office.
If your scores don’t match but are relatively close, that’s fine, as Equifax and TransUnion’s calculation methods are different. In addition, Equifax and TransUnion may have additional credit information on your reports, which could cause your TransUnion score to differ from your Equifax score. Once you get over the shock factor by comparing two different credit scores, you may wonder why there is such a big difference between Equifax and Transunion numbers. When it comes to the difference between TransUnion and Equifax, it’s important to remember that credit reporting agencies generally rely on the same factors when calculating a credit score.
Suppose you regularly check your credit report and monitor your credit scores from the two major credit bureaus (TransUnion and Equifax) and TransUnion Equifax (TransUnion and Equifax). In that case, you may have noticed that they may be slightly different. Banks and other lenders use three different Experian reporting companies to determine your creditworthiness in the US. In addition, companies such as credit counselling sites, lenders, and banks often pay these two credit bureaus to access your files successfully and agree to rate you at risk.
Transunion Vs Equifax in Canada
Some lenders may report to all three major credit bureaus, while others may only report to one or two. This is because credit bureaus rely on lenders and lenders to get the information they need; not all individual lenders report to both credit bureaus (although most large lenders report to both) if they report to them, which could lead to a discrepancy between your reports from Equifax and TransUnion. Of course, there can also be slight differences in the data used to obtain a credit score because credit reporting agencies do not necessarily receive the same information from lenders and lenders.
It’s also worth noting that some lenders and lenders focus solely on scores that highlight industry-specific information. In contrast, others prefer to combine a TransUnion or Equifax credit score with Experian scores. TransUnion uses much of the same personal information that Equifax uses to calculate your loan; however, TransUnion may consider certain aspects of your credit history more critical than Equifax. Regularly reviewing your credit history and credit score from Equifax and TransUnion will help you identify any errors and give you information on how to improve your credit history and gain more significant credit potential.
You can check your credit score free with Borrowell (Equifax) and Credit Karma (Transunion). Now you can check your credit score for free (this was not the case back in the day) because these credit agencies give you some advice in the form of financial products, which is how they make money. You can pay the bureau for regular monthly online reports, but there is a way to get monthly reports and an updated credit score for free.
Monthly score updates make it easy to keep track of your credit for any potential issues, e.g. You can always check your credit score at any time with a free Credit Karma subscription that gives you free access to your Equifax and TransUnion credit reports and VantageScore 3.0(r) scores from both offices. Your credit reports and credit scores are collected and tracked by Canada’s major credit bureaus, Equifax and Transunion Canada.
Unlike Canada, Americans can easily access their scores by purchasing them from the FICO website or through the FICO Open Access Program without any risk affecting their credit score.
Equifax and TransUnion follow the same basic principles, specifically your efforts to make payments on time, the length and type of credit history, and your debt ratio when calculating your credit score on a scale of 300 to 900. However, your credit score depends on your credit balance, credit inquiries (complex requests), your credit history (how often you pay your bills and whether you have a minimum balance), your payment history (when you pay your bills), and credit Usage (how much you have available, for example, if you have a $10,000 limit on your credit card account and you regularly bill $9,500, this will negatively impact your credit score). In addition, while credit ratings are typically based on the same or similar factors, including payment history and the number of accounts in good standing, each credit rating model may weigh these factors differently. As a result, it’s unlikely that lenders will accurately compare TransUnion and Equifax’s scores, most of which focus on average scores across innings.