Your Equifax credit score is more likely to appear lower than your TransUnion one because of the reporting differences. It’s important to know that while each credit agency, or bureau, creates its own proprietary report, no single agency is more important than another.
Credit Bureau Differences
Equifax uses its own scoring model with a range of 280 – 850, with “good” being 670 – 739 and higher. TransUnion typically utilizes the VantageScore model, ranging from 300-850. The data each bureau collects can also vary, and a lender may report updates to different bureaus at different times.
- TransUnion criteria when using the VantageScore model:
- Payment history
- Credit type
- Used credit
- Total balance
- Recent credit applications
- Available credit
The differences in scores arise from variations in credit scoring models, unique data reported to each bureau, and the dynamic nature of credit reporting.
Credit Monitoring and Lender Preferences
You should check both Transunion and Equifax credit reports periodically. Lenders may have a preferred credit report between Equifax, Experian, or TransUnion, and they may pull more than one credit report if needed to determine loan qualification. It is difficult to definitively answer which of the two credit bureaus is more accurate, as they use the same methods and data to compile individual credit reports.
Some lenders opt to use internal scoring models too. For larger loans like mortgages, lenders might look at both reports to get a complete picture of the borrower’s creditworthiness.
Lenders and Scoring Models
Lenders may look at your scores from all three credit bureaus and take the median score for the qualification process.
- Banks use the following FICO scores when you apply for a mortgage:
- FICO® Score 2 (Experian)
- FICO® Score 5 (Equifax)
- FICO® Score 4 (TransUnion)
The most accurate credit score is the latest version of the FICO Score and VantageScore credit scoring models, namely FICO Score 9/10 and VantageScore 3.0/4.0. These are used by 90% of top lenders and widely considered to be important.
In summary, while both TransUnion and Equifax scores are important, lenders will look at your FICO score from all three bureaus to determine your creditworthiness. It’s important to monitor all of your scores regularly in order to maintain good credit.